Trade federation Cosatu has called for the introduction of more wealth taxes as a means of reducing inequality across South Africa.
In a 10-page document – which also outlines proposals for the use of public pensions to assist Eskom – the federation said that the country’s tax regime must be made more progressive and additional sources of revenue generated.
‘This must include ensuring the rich pay their fair share, the burden be shifted away from the increasing levels of taxation upon workers and the redistribution of wealth,” it said.
In addition to clamping down on high profile tax evasion cases and reducing tax loopholes, Cosatu said that the wealthy should pay increases for the following taxes:
- Personal income;
- Customs duties;
- VAT on luxury goods.
Cosatu said that government should also provide tax relief for the poor by increasing the allocation of free electricity and water for indigent households.
The federation said that this should be done by introducing a progressive sliding water and electricity tariffs based upon property value and excessive consumption.
To aid with revenue collection, Cosatu said that additional interventions are also needed at the South African Revenue Services (SARS).
It said that these interventions should include:
- Massive investment in additional resources and personnel for SARS Customs enforcement to raise the current 5% inspection rate to 100% for all imports entering ports and borders;
- Recapacitating specialised units and filling critical vacancies;
- Specialised units and plans to tackle illicit goods, especially tobacco and clothing.
You can read the full proposal document below: