Hybrid system for fees proposed
Free tertiary education for all is not affordable, says tax committee
Free university education for all is neither affordable nor desirable, but the government could raise the money to help academically capable students who need financial assistance, says the Davis tax committee. It has proposed a hybrid system of grants for poor people, government-backed loans for the "missing middle" and fees for the wealthy, which it says would require an extra R15bn a year. Increasing the top marginal tax rate for individuals by 1.5 percentage points would raise an additional R5.1bn. Changing the capital-gains tax inclusion rate for companies from 80% to 100% would yield an extra R1.4bn, and increasing the skills-development levy by 0.5% would provide another R8.8bn, the committee said in its report on funding university education. "While it may not be the most politically palatable option, it does provide the largest immediate reduction in financial exclusion for the smallest government expenditure," the committee said. Free university education for everyone was ...
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