The SA Revenue Service’s Mark Kingon is correct to raise concerns about the shortfall in SA’s tax take (“Growth too low to meet revenue target, says Mark Kingon”, August 28). With nothing but anaemic growth in the offing, this shows no signs of turning around.

This has all manner of implications, not least for the sustainability of SA’s extensive (relative to its level of development) welfare system. A few years ago the Treasury was warning that current social spending could be sustained on GDP growth of 3% a year, and we are now well below that. Policymakers show no signs of moderating their intentions. If anything, the proposed National Health Insurance points in the other direction...

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