The amandla.mobi community supports the highest net wealth tax rate of between 3% and 9% because it is what is needed if we are to increase and expand social grants and take steps towards introducing Basic Income Support at a level of a living wage as well as stopping budget cuts for essential services.
Ahead of Minister Tito Mboweni’s budget speech, community advocacy organisation amandla.mobi submit a campaign calling for the rich to be taxed to realise interventions that will help millions of people in Mzansi who are struggling to survive the impacts of the COVID-19 pandemic.
Supported by over 49 000 people, the campaign’s key demands are an urgent increase in Personal Income Tax (PIT) for people earning over R1 million, as well as a commitment to introducing a sliding high rate, annual net wealth tax for those with wealth exceeding R3.8 million.
The amandla.mobi community further calls for pro-poor interventions and commitments such as dramatically reducing the medical aid rebate and eliminating retirement fund contributions deductions or rebates for those earning over R1 million a year. There should also be no increase in Personal Income Tax for low-income earners, who as the cost of living continues to rise – with a basic food basket even exceeding the minimum wage.
“Given the pandemic, which has exacerbated the inequalities which preceded it, this may be one of the most critical budgets since 1994”, says amandla.mobi Campaigner, Tlou Seopa. “The minister has asked the public for input on the budget, so we urge Minister Mboweni to consider our campaign demands. Doing so is a crucial step towards realising necessary interventions to create a Mzansi that is equal for all,” adds Seopa.
According to multiple pieces of research, Mzansi has over 300 000 plus multi-millionaires. The amandla.mobi community supports the highest net wealth tax rate of between 3% and 9% because it is what is needed if we are to increase and expand social grants and take steps towards introducing Basic Income Support at a level of a living wage as well as stopping budget cuts for essential services.
Beyond these tax commitments, we call for re-allocation of public expenditure and minimising government irregular expenditure. The pandemic continues to put many families in dire living conditions, while the rich remain able to sustain luxurious lifestyles and, in some instances, even grow their wealth. Sibahle X, a campaign supporter, notes that “The COVID-19 pandemic has increased marginalisation in South Africa’s society, and the government is not moving fast enough to bridge the increasing gap between the poor and the rich”. Another supporter, Michael Y, says, “taxing the rich is the beginning of the struggle for social equality to prevent destitution of the majority.” It is time to properly tax the rich.
Find the campaign here: Tax the rich to increase grants, pay for vaccines and stop budget cuts
For more information and interviews:
Tlou Seopa
Amandla.mobi: Campaigner
Cell: +27 81 761 5326
Email: [email protected]
