Tax protest announced against government’s threefold increase
7 September 2021
The Solidarity Research Institute today presented a report that shows that the burden on taxpayers could increase as much as threefold if the White Paper on the National Health Insurance (NHI) is accepted and the Green Paper on social security is implemented after being reviewed.
Solidarity’s Executive Council made the decision that a comprehensive, legal tax protest may be instituted. As part of the protest, the plan is to test the NHI proposal in court. If the government should continue with its intention to republish the Green Paper on social security, Solidarity would challenge that in court as well.
According to the report, the taxes paid by South Africans are incredibly high in world terms, without the government fulfilling its side of the traditional contract. The report revealed that the tax to GDP ratio is the second highest in the world after Sweden. Further impact studies show that the implementation of the NHI will result in such an increase in taxes that the tax burden of the majority of taxpayers could increase threefold.
“The White Paper (and Green Paper) are both irrational and unaffordable. The government did not make any calculations about the actual impact of the proposals. Solidarity is the only organisation that has done proper impact studies and our findings show that the government's proposals are completely outrageous,” said Solidarity Chief Executive Dr Dirk Hermann.