Fin24

ANC mulls resources rent tax

2012-03-05 12:28

Johannesburg - The ANC's policy discussion documents released on Monday focus on a "second transition" period for South Africa, said Jeff Radebe, policy sub committee chairperson of the party's national executive committee.

"The ANC today is operating in a South Africa where its policies have contributed to change. We also operate in a changing Africa and a changing world," said Radebe, who is also justice minister.

Ideas for discussion include a proposed a 50% resource rent tax on returns on investment. This would be on returns on investment in excess of the Treasury long bond rate plus 7%, to be "ringfenced" in a sovereign wealth fund.

This fund would be used to fund minerals development, geo-survey and technical human resource development, and research and development.

It would also be used to fund an offshore fiscal stabilisation fund and an offshore regional infrastructure fund to finance trade-related infrastructure.

Social transformation proposals include enhancing services to children and transforming early childhood development.

Fight against alcohol abuse

A more vigorous fight against alcohol and drug abuse is proposed by limiting the availability of alcohol and revising advertising and pricing policy.

On land reform, it is suggested that the current willing-buyer, willing-seller method is distorting prices. So a land management commission should be established to develop guidelines on land management.

A land valuer general is proposed to help bring consistency to land values and determine financial compensation in cases of land expropriation.

Expropriation should include expropriation for the public interest, which can also include restitution.

In the field of health, a need for the consolidation of the national health insurance is mentioned.

In the mass media, transformation of the industry and the broadening of ownership are proposed to achieve empowerment goals.

Another suggestion is a media appeals mechanism, independent of government and business influences.

Turning to the provinces, "serious consideration" to amend the constitution is mooted to reform and strengthen the provinces.

Radebe said there was nothing wrong with the ANC discussing changes to the constitution.

"There is scare tactics in the public domain that we in the ANC are not allowed to talk about the constitution," he said.

The documents also contain proposals about further devolving power to local municipalities, in the light of complaints about service delivery, and better integrated urban environments.

A single police service is also envisaged.

Radebe criticised whoever had leaked the documents to the media, saying they were "Judas Iscariots".

 

Comments
  • Boer - 2012-03-05 12:59

    It is simple. We don't trust you.

      alansmartSnr - 2012-05-30 18:55

      Fighting corruption and better controls should be the priorities.

      alansmartSnr - 2012-05-30 18:55

      Fighting corruption and better controls should be the priorities.

      alansmartSnr - 2012-05-30 19:07

      Fighting corruption and better controls should be the priorities.

  • Jacqui - 2012-03-05 13:18

    I don't mind you talking about it Mister Radebe, it's what you do afterwards that concerns me.

  • francois.visagie - 2012-03-05 13:49

    Radebe said there was nothing wrong with the ANC discussing changes to the constitution. "There is scare tactics in the public domain that we in the ANC are not allowed to talk about the constitution," he said. ... Radebe criticised whoever had leaked the documents to the media, saying they were "Judas Iscariots". Now why am I not surprised?

  • Russel - 2012-03-05 14:12

    Blah blah blah ..... yet more taxes. We have one of the highest tax rates in the world already but they want more taxes. This against a backdrop of massive wastage. (http://www.news24.com/MyNews24/GFIP-Toll-Roads-Lets-do-something-20120305) What is needed to make a change for the better is better administration and usage of the funds. We'd be a lot further down the road to a better S.A. than we are now if this one little thing was fixed (along with a great steel boot on the throat of corruption.)

  • appietrader - 2012-03-05 16:04

    More taxes, more money for stealing!! Go ahead tax SA out of the market. Who in his right mind will come and do Direct Investment here???? Me thinks investors should start running!!!

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