COSATU, some NPOs tell Parly govt should tax the rich
They've proposed this as an alternative to raising value-added tax (VAT) and other taxes that could harm the poorest consumers and some industries.
Picture: @ParliamentofRSA/X
JOHANNESBURG - The Congress of South African Trade Unions (COSATU) and some non-profit organisations (NPOS) have told Parliament that the government should rather tax the rich.
They've proposed this as an alternative to raising value-added tax (VAT) and other taxes that could harm the poorest consumers and some industries.
ALSO READ: COSATU says any VAT hike will hurt the poor, says govt should focus on wealthy
They made the submissions on Tuesday during public hearings into the fiscal framework and revenue proposals held by the joint finance committees from the National Assembly and National Council of Provinces (NCOP).
NPOs, labour unions, and tax experts have made calls to Parliament to consider their inputs before passing the budget.
Most of the submissions have rejected the VAT increase proposal and want different alternatives to be considered.
COSATU’s parliamentary coordinator, Matthew Parks, said companies and the wealthy should be targeted to shield the poor.
“A general wealth tax and raising company tax on wealthy corporations to really shift the burden away from the poor to the wealthy who can afford it.”
Lisa Higginson of the Budget Justice Coalition said they should target pensions instead of raising VAT.
“In terms of the details of the Government Employees Pension Fund contribution freeze, as we understand, it’s about R59 billion that could be added and won’t have any impact on pensions.”
The National Assembly and National Council of Provinces will now look at all submissions before deciding whether to accept or amend the fiscal framework.