South Africa is in need of redistribution and growth. Every year we hear about how the country does not have enough money for schools, clinics and hospitals, and how the rich are overtaxed. There are extreme contradictions in how people experience and live in this country that show that increasing taxes on the rich is not only necessary but possible.
In this publication, AIDC argues that it is crucial to enhance the progressivity of the tax framework and increase taxes to raise more revenue that can contribute to expanding social spending and investing in the transition to a low-carbon economy.
However, taxation is not simply about raising more revenue; fundamentally, the tax system must contribute to reducing inequalities. In the South African context, given how the concentration of wealth has increased in post-Apartheid South Africa and how most of this wealth has been accumulated through the inhumane system of Apartheid, there are both economic and moral imperatives to redistribute wealth from the rich to the poor.
We hope you find this publication informative and valuable. Please do not hesitate to contact us with any questions or for further information. Read the full report below.
