By Naadiya Adams
South Africa’s general tax burden has been compared to world standards and has been found to be the second highest-taxed nation in the world coming in at 30% after Sweden’s 31%.
Trade Union Solidarity has announced a comprehensive legal tax protest in light of this finding.
The union presented a report by its research institute on Tuesday that showed that the burden on taxpayers could increase threefold if the white paper on the National Health Insurance scheme is accepted and the green paper on social security is implemented.
In an interview with Radio Islam, Theuns Du Buisson says South Africa is overtaxed.
“Basically if you’re in the form of any full-time employment you will likely pay around 43%, your income tax burden is 30% but then, if you add fuel, VAT and all kind of other taxes that we pay, toll fees, UIF contributions,” said Du Buisson.
Other countries generally pick one or two forms of taxes and stick with it but in South Africa that is not the case.
“In South Africa, if a type of tax exists we’re probably paying it,” said Du Buisson.
He says if you earn R7500 in South Africa, you already make up the top 20% of top earners in the country, Du Buisson says it’s hard to understand where government believes the money for the NHI scheme and social security scheme will come from.
“In South Africa we already have a budget deficit of about 14%, which South Africa then has to go out and borrow from others… you can’t go on long term with debt because at some point the lender will claim what is owed,” explains Du Buisson.
While a court battle by the union is about to be set in motion, Trade Union Solidarity says their vision and way forward is clear and they plan to do everything in their power to prevent bills that will add to the already heavy tax burden on South African citizens.
“First of all, preventing bills like the NHI , we’ve already thrown an extensive campaign against that and also against the new social solidarity bill so we will keep fighting that,” said Du Buisson
He also stressed that every South African should do as much as they can to legally pay as little tax as possible.
“I encourage every person listening and especially our members to pay as little taxes to this corrupt government as they possibly can,” said Du Buisson.
Du Buisson suggests donating to charities and organizations that are accredited by SARS who provide better services to communities than the government.
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