South African taxpayers have historically been successful at resisting forced government policies they deem unjust\u2014and failing that, thousands have just called it quits on the country altogether.<\/p>\n\n\n\n
South African taxpayers are already significantly overburdened – with the government’s demands for more revenue piling added pressure onto a strained and tiny tax base.<\/p>\n\n\n\n
While the country has over 24 million registered taxpayers in a population of over 60 million people, only a fraction of this\u2014around 5 million\u2014account for the bulk of taxes.<\/p>\n\n\n\n
Despite this, the ANC-led government has promised that this tax base will foot the bill free ‘quality’ and ‘comprehensive’ healthcare and a monthly stipend in the form of a basic income grant. This is over and above paying for the plethora of other deteriorating public services.<\/p>\n\n\n\n
One of these promises has already been followed through by President Cyril Ramaphosa, who signed the National Health Insurance (NHI) into law in May. The foundation for the BIG has already been laid<\/strong><\/a> with the R370 Social Relief of Distress grant, which has been extended to 2025 (and likely beyond).<\/p>\n\n\n\n Both of these ambitions will require billions of rands to implement, with the NHI estimated to cost at least R200 billion a year to run (conservatively) and the SRD grant costing close to R40 billion a year to maintain on an already-strained budget.<\/p>\n\n\n\n The government has made it clear that taxpayers will cover this. <\/p>\n\n\n\n The NHI foresees tax hikes down the line in the form of payroll taxes, income tax surcharges and removing medical aid tax credits<\/strong><\/a>. It has been proposed that a wealth tax be implemented to fund the BIG.<\/p>\n\n\n\n