Message to Pravin Gordhan: no tax increases while corruption and maladministration run rife

The Organisation Undoing Tax Abuse (Outa) has released a video message to finance minister Pravin Gordhan, saying that there should be no tax increases while there is massive corruption and maladministration in the government.

“South Africa is struggling to maintain its rightful position as a leading developing nation,” Outa chairperson Wayne Duvenage said.

“We are punching well below our weight and it comes down to poor governance, maladministration, corruption and weak political leadership,” said Duvenage.

In a video message to Gordhan titled “You cannot raise taxes while the bucket is leaking”, Duvenage suggested the following actions:

  1. Don’t increase taxes this year. First fix the lethargic government, and clean up public administration.
  2. Reduce the bloated size and the extravagant cost of the government by 30% over the next five years.
  3. Seriously fight corruption, with a well-executed plan and no political meddling.
  4. Privatize non-strategic state-owned assets. Government must get out of the business of business.
  5. Create laws and policies which will stimulate investment and create jobs.
  6. Improve education and healthcare. This includes better trained and paid teachers.
  7. Promote transparency among all government departments and state owned entities.

Duvenage said that South Africa has no excuse to show a worse economic performance than our peers, especially with a hard working population, great natural resources, and excellent tourism potential.

“South Africa’s GDP growth should be anywhere between 3% and 5% per annum, for years to come,” said Duvenage.

He encouraged the government to “walk with us” with meaningful action, and to start now.

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Message to Pravin Gordhan: no tax increases while corruption and maladministration run rife