DEBORAH TICKLE: Tax is a result of growth and not a means to create it, Saica argues
Tax is a result of growth, not a means to create it
To have the money to embark on economic transformation in the context of social upliftment such as more homes, adequate social grants, better schools, hospitals and policing, as alluded to in President Jacob Zuma’s state of the nation address, SA needs economic growth. During his previous tenure as finance minister, Pravin Gordhan indicated that 5% growth was needed for anything meaningful to be achieved. Now faced with only about 0.5% growth in 2016 and the promise of 1.5% for 2017 (even that is hopeful), he was faced with a very difficult job. He reiterated the need for growth, but also pointed out that 2016-17 is the first year since 2009-10 when tax growth has not equalled economic growth. The call from the government is for more cash — R28bn more. As tax is ultimately always derived from people, including through business (including income tax and customs duties), employees (including PAYE and skills development levies), normal income tax, VAT and sin taxes, logically one can s...
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