The South African Treasury should set aside about R1,1-billion a year to increase the pace of land reform and protect the principle of willing buyer, willing seller, says the official opposition Democratic Alliance in its alternative Budget.
In a statement released by officials Gareth van Onselen and Nick Clelland Stokes ahead of Wednesday’s national Budget by Minister of Finance Trevor Manuel, the party also motivates a R110-a-month income grant for individuals earning less than R7Â 500 a year “to alleviate the immediate effect of poverty”.
The party says it would introduce annual nationwide literacy and numeracy testing at primary schools in order to enable identification of underperforming primary schools.
It also proposes setting aside R800-million for a fund dedicated to improving the level of science and mathematics education in South Africa.
The party proposes providing tax relief to promote the use and production of biofuels as well as on security-related expenditure.
The R20-billion-plus Gautrain project should be scrapped and the money spent on an additional R2-billion-a-year subsidy on taxis, 300 buses nationwide, 200km of ordinary rail and 100 additional Metrorail coaches.
Opportunity vouchers for school leavers to the value of R4Â 500 a year should be used to fund tertiary education, apprenticeships, initial employment or small businesses.
It makes no sense that a country with a 38% unemployment rate and a tiny deficit has one of the highest tax rates on companies in the world, the party argues. “Imaginative” changes to the tax system to kick-start the economy — and create jobs — are needed.
It proposes that the secondary tax on companies — a dividend tax — be halved. The government should make a commitment to reduce corporate income taxes to 25%, starting with a 1% reduction to 28% this year.
In addition, tax on retirement funds should be reduced by one-third. The interest and foreign-dividend income exemption should be raised to R20Â 000 a year.
“Altogether, our proposed programme of tax cuts and offsets comes to the value of R29,7-billion, which, together with our expenditure proposals, will take the Budget deficit to 3,2%,” the party said. — I-Net Bridge