Tax burden on middle class 'challenging': Enoch Godongwana

ANC’s Enoch Godongwana says Treasury has various mechanisms to fund the vaccine. Courtesy #DStv403

JOHANNESBURG - The ANC's Enoch Godongwana says that due to COVID-19 and the unemployment rate that has increased, middle class South Africans have been placed at a disadvantage when it comes to paying their taxes.

He says the model still stands: The richer you are, the more tax you pay.

"We have not entered that terrain, which we think is more operational in our view, and secondly, we ourselves have got our own subjective views which may not necessarily talk to modelling," he said.

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"We have got a model and also, there are a lot of things that we have to take into consideration.

"The ease of administration, the tax burden, the class nature of that tax burden and a whole range of other things, the Minister of Finance has to take into account."

Godongwana said: "As the ANC, as I have indicated, we've never had to say we will tax this. We make an aspirational view which says, whatever you do, your taxes must be largely progressive in nature."

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"In other words, the richer you are, you pay more taxes than the lower taxes. There's a challenge indeed about the tax burden on the middle class."

He said pre-COVID, 16 million people in the country were employed and less than half of those were paying personal income tax.

"Personal income tax becomes sensitive in that nature because it places a disproportionate burden on the middle class," Godongwana said.

* Godongwana was speaking to Karima Brown on The Fix. Watch the full interview above.

Source
eNCA

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