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MINISTER GODONGWANA, PLEASE EXPLORE ALTERNATIVES BEFORE TAX INCREASES

 

OUTA wrote to the Minister of Finance and proposed 11 actions that could generate R500bn annually for Treasury. 

South Africans are tired of the kind of rhetoric presented at the G20 Anti-Corruption Working Group. It’s time for government to back up its words with real commitment to tackling corruption and maladministration – at home, not just on the global stage. What we need is decisive action.

Tighten tax collection – Crack down on tax evasion, customs fraud, and illicit financial flows (R337.5bn per year)

Broaden the tax base – Formalise and tax the taxi industry and parts of the informal sector (R13bn per year)

Cut non-essential government spending – Freeze non-critical hiring, scrutinise contracts, and reduce VIP perks (R12.8bn per year)

Recover looted funds – Empower law enforcement to reclaim stolen state money (R10bn)

Release hidden surpluses – State entities are hoarding billions meant for public benefit (R41.6bn immediately, R8.3bn per year)

Reform SETAs and NSFAS – Stop wasteful spending in education and training programs (R6.3bn per year)

Increase sin taxes – Higher levies on alcohol, tobacco, and sugar could bring in R3bn per year

Sell underutilised state assets – Non-essential properties and SOEs could raise R6bn

Fix municipal funding mismanagement – Stricter oversight could save R10bn per year

End procurement corruption – Transparent, digital procurement could recover R100bn per year

Reform government boards – Reduce wasteful spending on oversized, ineffective boards (R0.3bn per year)

The solutions are there. The question is: will government act?

Read the full breakdown of our suggestions and our letter to the Minister here 

Read our press release here