The civil rights organisation AfriForum’s legal team is ready to fight the new state controlled social security fund to prevent this plan from getting the green light.
According to the Green Paper that was compiled by the Department of Social Development, all citizens will be forced to deposit 12% of their income into this fund, up to a maximum of R2 760 per month. The fund will be used to pay social and pension grants to citizens. People who earn a higher income will still have to make contributions to their own private pension funds.
According to AfriForum it seems as if the government is trying to encourage citizens to launch a tax revolt.
Johan Kruger, Head of Community Development at AfriForum, says the proposal is far-fetched and a sign of an ANC that is simply not able to establish sustainable economic growth and that has reached bankruptcy when it comes to ideas on creating jobs. “The already over-taxed taxpayer will have no other choice but to refuse to pay 12% of their income additional to the extremely high tax burden they are already facing. The ANC is playing with fire and is bent on testing the patience of communities and taxpayers.”
Kruger continues to say that the ANC’s welfare state is simply not sustainable. “An additional commitment such as this one will kill the goose that is laying the golden eggs. Communities are on the edge of a tax revolt, but the ANC is burying its head in the sand and continuing its outdated ideologies and policies.”
“About 2,7 million taxpayers are sustaining the rest of the country and it is ludicrous to place an even bigger burden on the already overtaxed taxpayer. There is also little doubt on what will happen with the money. If one considers the ANC’s track record in this regard, it will end up being spent on overseas holidays, German cars, and French designer outfits,” says Jacques Broodryk, AfriForum’s Manager for Campaigns.