Publications
Partners
Cape Town - Fin24 users in their Tips for Nene have been most vocal on corruption, unchecked spending by politicians and state officials, unlawful spending and wasting taxpayers money.
One of the major concerns raised, however, was expected plans to impose more tax on the wealthy.
"The best way to balance our account is to cut wasteful expenditure - stop all forms of corruption and hold people accountable for their actions whether it be the president, deputy president and or ministers," suggested Taher.
He advised Finance Minister Nhlanhla Nene ahead of his maiden National Budget speech on Wednesday to cut all the expenses that have been allocated to high government officials, including fancy cars and houses and elaborate overseas trips for government meetings.
Wally Stowe wrote in his tip to Nene: "You need to put SA first. Your President needs to be told that he has to scale down on all spheres of goverment."
He advised Nene to raise the fuel levy, raise VAT on all imported luxury goods and raise VAT by 2%, but exclude it on all the basics for the poor. He also asked Nene not to overburden the consumer with the Sin Tax.
Neill Valentyn wrote a long letter, pleading that Nene not drive away the geese that lay the golden eggs with a wealth tax.
He agreed that a mixed approach to tax hikes are effective "and this should not change", but "we should think outside the box and not just seek an easy answer for what is a very complicated question".
"It is apparent from what I read in the news that the primary target for filling the rapidly emptying coffers of our state is the wealthy.
"While I agree that each should give what they can afford (and they probably afford a little more), it is generally the wealthy that either directly or indirectly drive large parts of the industry in South Africa. So, while they do seem a 'low hanging fruit', I must caution on the risks of driving away the geese that lay the golden eggs," Valentyn wrote.
He recommended a slightly different approach whereby the government can incentivise those who are in debt to clear (or at least address) what they owe, thereby empowering the nation to become one of contribution and not merely one who meekly repays what he owes.
He lamented South Africa's debt situation, saying "the debt problems of our nation continue to cripple the masses, so providing true incentives would allow the general financial health of the populas to improve".
"So, instead of only seeking a source for a new tax or simply raising an existing one, I recommend a blend of realistic tax increases coupled with legislation aimed at incentivising our people to drag themselves from the edge of financial ruin.
“Debt will always be a reality, but until we can encourage people to settle their debts, the majority of debt will remain a hindrance to improved consumer spending, impacting negatively on business revenues and the taxes levied thereon.”
* Visit our Budget Special for pre-budget commentary, live streaming of the Budget speech, live post-budget analysis, Budget infographics, calculators, Tips for Nene and much more.
