Much heat and little light is being generated around land expropriation without compensation (EWC). The risk of property confiscation is damaging confidence and the economy. If the ANC is sincere that the purpose of EWC is to address the race imbalance in land ownership (and not a Trojan horse for the nationalisation of land) there is a better way.
Introduce a 10% land reform surcharge on personal tax. Personal tax raises about R550bn per year. The surcharge should therefore garner some R50bn per annum. This is 10 times more than the present budget for land reform, and should rapidly address land imbalances. This would at the same time provide a huge capital injection into the primary farming sector, creating investment and jobs...
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