SolidarityBusinessTech reports that trade union Solidarity has published a new report showing that the burden on SA taxpayers could double if the White Paper on the National Health Insurance (NHI) is accepted and the Green Paper on social security is implemented after being reviewed.

According to the report, South Africans pay incredibly high taxes in global terms, while the government generally fails to fulfill its side of the social contract. The report revealed that the tax to GDP ratio in SA was the second-highest in the world, after Sweden. Data from the SA Revenue Service (SARS) shows that 3.4 million taxpayers pay 91.2% of all personal income taxes in the country. These are individuals earning more than R250,000 annually. Impact studies conducted by the union show that the implementation of the NHI could result in the tax burden of the majority of these taxpayers increasing by 36%. “The White Paper (and Green Paper) are both irrational and unaffordable. The government did not make any calculations about the actual impact of the proposals. Solidarity is the only organisation that has done proper impact studies, and our findings show that the government’s proposals are completely outrageous,” said Solidarity chief executive Dr Dirk Hermann. Solidarity’s executive council said that, given the impact of these taxes on the country’s shrinking tax base, it would institute a comprehensive, legal tax protest. Hermann said that Solidarity’s tax protest campaign would focus on litigation and that the group was preparing for the ‘mother of all tax court cases’ to stop the NHI White Paper and later the Green Paper.


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