Solidarity welcomes withdrawal of Green Paper on Social Security

1 September 2021

According to media reports, the minister of social development, Lindiwe Zulu, has withdrawn the controversial Green Paper on the National Social Security Fund (NSSF).

Solidarity welcomed the withdrawal of the Green Paper. According to Dr Dirk Hermann, Chief Executive Officer of Solidarity, the Green Paper was in its core absurd, irrational, unworkable and unconstitutional. The withdrawal is a victory for taxpayers who have pushed back.

According to Solidarity, action must be taken against the Minister.  The process caused a lot of damage and uncertainty.

Solidarity will continue its resistance and with legal action against the Green Paper if it comes to life in another form in the future. 

The Green Paper suggested that between 8% and 12% of employees’ salaries be deducted towards tax and 10 percentage points extra tax be levied for an increased basic income.

Solidarity started with legal action against the Minister of Social Development, Lindiwe Zulu, last week and gave 30 days for the Green Paper to be withdrawn. Solidarity’s legal letter pointed out that the correct process had not been followed.

“However, it is not only the process that was wrong. The Green Paper is rotten at its core. It is impossible to take more tax money from taxpayers. It is worrying that such an irrational Green Paper was published as part of the legislative process. It creates uncertainty about policy amongst ordinary workers, businesses and investors,” said Hermann.

Issued by Connie Mulder, Head: Solidarity Research Institute, 1 September 2021