The Democratic Alliance (DA) rejects the Department of Social Development’s new absurd proposal to tax South Africans anywhere between 8-12% extra, amounting to nearly R3000 a month for those earning R275 000 a year.
“The proposal should be withdrawn and binned,” said DA.
- UNREST l DA Request Meeting To Discuss ANC Failure To Curb Unrest
- Ramaphosa’s Promotion Of Mapisa-Nqakula, A Reward For Incompetence – ActionSA
The proposal shows a lack of basic understanding of how the tax system works, and is bizarrely regressive in that it is aimed at low earners rather than high earners. The proposal is essentially to tax low-income workers and the struggling middle class much more.
DA said South Africans are already facing extraordinary financial pressure in a shrinking economy, as millions have lost jobs or had their businesses shut or looted. The tax base is shrinking.
“No nation can be taxed into prosperity. Only economic growth that delivers more work for more people, and which grows the tax base, can fund a larger social safety net.
“One must ask how such a proposal even comes to be released for public comment, and why the Cabinet and the President did not stop it before release. This points to a breakdown in leadership at the centre of government,” said the party responding to the tax proposal.