The FF Plus is of opinion that South Africa’s National Budget, announced by Finance Minister Malusi Gigaba earlier is in many respects disappointing and highlighted the seriousness of the country’s financial problems.
Pieter Groenewald, FF Plus leader, says the minister failed to truly address the government’s enormous burden of debt that was created by the administration of the former president, Mr Jacob Zuma.
Groenewald predicts that the expected economic growth rate of 1,5% for 2018/19 and 2,2% in 2020 is not sufficient for it to have a substantial impact on job creation, particularly if the fact that more than a million people enter the labour market every year is taken into account.
“It cannot be expected of a certain group to just keep paying more and more tax”
He says she statement that the government will save R85 billion over the next three years does create the impression that they are serious about saving money, but just the interest on governmental debt amounts to R198 billion per year at present. Thus, the savings will be but a drop in the ocean.
“The minister also did not indicate what will be done to implement savings measures.”
Concerning VAT, the FF Plus is satisfied that it was increased with one percent as it is important to broaden the country’s tax base. For a long time, the FF Plus has asked for VAT to be increased instead of the excessive hikes in personal tax.
“At present, approximately 5 million tax payers out of 55 million South African citizens are expected to shoulder the tax burden. It cannot be expected of a certain group to just keep paying more and more tax. Basic foodstuffs like flour, brown bread and rice are excluded from the VAT hike and the increase will have almost no effect on the country’s poorest citizens.
“The FF Plus is of the opinion that the additional levy of 52 cents on the fuel price must not simply end up in the tax basket, but that it must be used exclusively for the Road Accident Fund (RAF) and the country’s road infrastructure,” says Groenewald.
Concerning free higher education, there needs to be a condition that students that quality for free education must pass their first academic year, otherwise it will just be a waste of taxpayers’ money.
Read the original article in Afrikaans on FF Plus
South Africa Today – South Africa News
