Government recently hinted at a tax increase to fund the urgently needed COVID-19 vaccines. OUTA says that a tax increase should be the absolute last resort, as South Africa’s tax base is fast diminishing and already overtaxed. 

Raising taxes will merely drive further investment and savings offshore, which is counterproductive for attracting investment, spending, and improving business confidence.

Government has various other options to obtain the necessary funding for this important project. 

This includes reducing the size of our bloated government by merging ministries and certain government departments, closing down unprofitable state-owned enterprises (SOE’s) like SAA, recovering the billions lost to corruption and putting an immediate embargo on purchasing vehicles, property and other assets for political office bearers at all levels of governments.   

We have taken the trouble to point out various ways in which government can cut down on state spending, thus freeing up money for vaccines. Read more here