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- ActionSA has launched a campaign to pressure the government not to increase taxes.
- This comes after the National Treasury revealed that a tax hike was among the options it was considering to raise funds to purchase Covid-19 vaccines.
- ActionSA’s Herman Mashaba said South Africans must draw a line in the sand.
ActionSA leader Herman Mashaba has launched a public campaign to oppose a possible tax increase.
This comes after the director general of the National Treasury, Dondo Mogajane, announced to the media that a tax increase was among his options to finance the Covid-19 vaccine.
In an interview on Radio 702, Mogajane said the Treasury was looking at various options, including changing priorities on spending, loans and taxes. “One way or another, we have to bite the bullet. We will have to do it for the sake of South Africans and for the sake of saving lives.” He added that while the country’s tax burden was high, the Treasury would ensure that the tax increase was not detrimental to the economy. “, said.
Founder and President of ActionSA, Herman Mashaba.
In a statement on Thursday, Mashaba said the #CutTheFat campaign called on all South Africans to draw a line in the sand and say “this far and no more” to a government “that continues to spend and live dearly while South Africans suffer.” .
Mashaba added that a government that raised taxes on any South African under current economic conditions would have to show that it had done everything possible to reduce its own expenses first.
“Instead, our government will proceed to deliver its budget in February, which will continue with its cabinet of 62 ministers and vice ministers along with their ministerial residences, congratulations to staff, VIP bodyguards, and private security. This is just one example of many that ActionSA will be around. exhibiting in the coming days and weeks, “he added.
READ | Freezing wages, tax increases or loans: how does the Treasury ‘ensure’ that there is money for vaccines?
Speaking to Fin24, an economist said he does not expect the Treasury to be overly aggressive with tax increases when Finance Minister Tito Mboweni delivers the budget speech in February.
The chief economist of the Office of Economic Research, Hugo Pienaar, told Fin24 that the Treasury should prioritize spending as a preferred option, rather than tax increases.
“Countries around the world are cutting taxes to respond to economic recessions caused by this global pandemic. They are doing so to increase family budgets and increase economic activity that employs more people,” Mashaba said.
He encouraged the public to support the campaign on the party’s website to pressure the government to cut its own spending to fund the launch of the vaccine, before considering raising an additional penny in taxes.
“Our message to the president [Cyril] Ramaphosa is showing leadership by example. While there are a lot of budget cuts that need to be made, the president should start by showing us a new cabinet that can fit into an average boardroom, “he said.
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