Today's Labour News

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cosatuBusinessLive reports that trade union federation Cosatu has called for tax increases, some targeting the wealthy, which it says will go a long way towards fixing SA’s perilous public finances.  

Cosatu, an ANC alliance partner, said it believed that the state could increase revenue and provide more resources in support of economic stimulus, job creation and developmental objectives by increasing company and capital-gains taxes, among others.  In the medium-term budget policy statement in October, finance minister Tito Mboweni painted a bleak picture of SA’s finances.  The Treasury has indicated that additional tax measures were under consideration to boost state coffers.  On Friday, parliament held public hearings on the 2019 Adjustments Appropriation Bill and the medium-term budget.  In its submission, Cosatu said increasing company taxes to 30% or 32% would generate an additional R13bn-R26bn in revenues.  Increasing capital gains tax to 45% could add R4bn.  Cosatu’s parliamentary co-ordinator Matthew Parks said the government should consider adding a further tax on “wealthy companies”, increasing inheritance, estate, land and dividends taxes for the wealthy, and hiking VAT for luxury goods, and custom duties for imports.  He called for the introduction of a “solidarity tax”, aimed at capping the growth of earnings of the top 10% and to accelerate the earnings of the bottom 10%.

  • Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive

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