South Africa’s citizens and companies can expect to pay higher taxes to fund the ANC’s ambitious five-year economic reform programme, set out in the party’s manifesto, to be launched in East London at the weekend.
Senior ANC and Cosatu sources confirmed that individual and company taxes would have to increase to fund the ANC’s proposed election promises on education, health and welfare.
An alliance leader, who asked not to be named, said there was little flexibility in tax rates for individuals, which might increase by 1% or 2%. However, corporate taxes would increase substantially.
”Corporate taxes are far below other comparable resource-based economies, so there is a lot more room to move without discouraging foreign investment,” the leader said. ”We need to raise more resources to fund the extension of the social security net.”
Reacting, ANC secretary general Gwede Mantashe said talk of increased taxes would ”incorrectly assume there is a funding crisis”. ”No decision is taken on the matter,” he told the Mail & Guardian.
Another ANC official said, however, that higher taxes are mooted in a document accompanying the election manifesto.
The M&G understands that the ANC proposes to extend the scope of child grants to children up to 18. However, an earlier proposal of a jobseeker grant for young people between the ages of 18 and 25 has been dropped as the party now accepts that it is unaffordable.
Reflecting the stronger influence of its trade union and communist allies, the manifesto prioritises poverty relief and job creation. All trade and industrial policies, including those related to foreign direct investment, will have to be premised on the creation of ”decent” jobs.
The manifesto also calls for an increase in no-fee schools to 60% of the total, for heavier investment in the public service to ensure better service provision, for improved assistance to people living with HIV/Aids and for an unspecified increase in the state old-age pension.
In a related development the ANC is to stage its national list conference next weekend, while all provinces are expected to hold provincial list conferences from Sunday.
The provisional lists circulated in the provinces place ANC president Jacob Zuma, his deputy and South Africa’s president, Kgalema Motlanthe, and ANC chairperson Baleka Mbete in the top three positions on the national list.
In terms of the provincial list, North West ANC chairperson Nono Maloyi looks set to take the premiership. However, Maloyi faces competition from ANC national deputy secretary general Thandi Modise and the national deputy health minister Molefi Sefularo, also proposed as premier candidates by the provincial working committee.
Former Mbeki supporters, including provincial secretary Supra Mahumapelo, have declined nomination. In Gauteng current premier Paul Mashatile tops the provincial list, indicating he will retain the premiership. ANC Women’s League president Angie Motshekga and ANC deputy provincial chairperson Nomvula Mokonyane appear on the national list, suggesting they may be bound for the national Cabinet.
The Gauteng ANC has also placed youth league stormy petrel Julius Malema on the national list, indicating that he may become an MP.
Winnie Madikizela-Mandela and former Ekurhuleni executive mayor Duma Nkosi also appear on Gauteng’s national list, suggesting they are on the comeback trail.
ANC deputy chief whip in the National Assembly, Andries Nel, is set for a Cabinet position if Gauteng has its way. Some in the ANC feel Nel has not got the recognition he deserves.
Eastern Cape branches have not finalised nominations, but current premier Mbulelo Sogoni is unlikely to continue in the position.
The new premier will be provincial finance minister Phumulo Masualle or former ANC provincial leader Mcebisi Jonas. Jonas is supported by the youth and women’s leagues, while Masualle has the backing of the ANC’s alliance partners.
Some Eastern Cape branches favour provincial chairperson Stone Sizani as premier – following the Polokwane congress resolution recommending that provincial chairpersons also become provincial premiers.
In the Western Cape branches are likely to implement the resolution by nominating provincial chairperson Mcebisi Skwatsha as premier candidate. ”Ideally you want the most popular person as premier because that person is meant to win the election for the ANC,” said a member of the ANC task team appointed to manage elections in the province.
The preferential list distributed by the Northern Cape youth league proposes controversial provincial chairperson John Block as the next premier.
In Limpopo ANC chairperson and provincial transport minister Cassel Mathale tops most lists drafted by branches and is poised for the premiership. Mathale’s chances were boosted by the Limpopo ANC’s resolution last July calling for the chairperson to be the only premier candidate.
The Limpopo list also includes ANC leaders seen as Mbeki sympathisers, but premier Sello Moloto, who lost the provincial chair last year, is not among them.
Mpumalanga ANC chair and agriculture minister David Mabuza tops the provincial list. However, he is not seen as a shoo-in for the premiership as Luthuli House has allegedly lost confidence in him since he failed to forge party unity in the province. His detractors have proposed his deputy, Charles Makola, for the top post.
Zweli Mkhize and Ace Magashule top the lists in KwaZulu-Natal and Free State respectively.