LETTER: Households and individuals should be first in line to receive tax respite
SA cannot become a nation of corporates if it is to achieve sustainable growth and employment
The recently announced percentage point tax cut for corporates should be welcomed. Companies contribute heavily to the exchequer, and tax cuts in general are always healthy for an economy as they leave businesses and households as well as individuals with more disposable income. This feeds into the economy and in turn allows private enterprise to flourish.
That said, if there are to be tax cuts, households and individuals as well as SMMEs should be first in line to receive such respite as they are meant to form the bedrock of an economy. At least that is the case in most advanced and resilient economies.
SA cannot become a nation of corporates if it is to achieve fulfilled sustainable growth and employment. It is simply not possible, particularly in the context of the SA economy and its labour force, as corporates cannot possibly absorb such a colossal labour market.
Sufficient succour for SMMEs, as well as lower taxes for individuals and households, must be prioritised if we are to achieve inclusive sustainable growth going forward. The last thing the SA economy needs is an overburdened middle class, which has already been decimated by the coronavirus pandemic.
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