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TAX REVOLT IN REPUBLIC OF SOUTH AFRICA

A tax revolt is rapidly developing in the Republic of South Africa. The newspapers are giving more coverage to it than ever before and small groups are encouraging people to sign petitions objecting to personal income tax.

The Margo Commission has said very little about it's direction of investigation. Individuals who have submitted recommendations of sizeable changes have had little if any feedback from the Commission. Unemployment is increasing rapidly and forced liquidations are reaching an unprecedented level.

Opinions on action to be taken vary considerably and most recommendations favour one sector of the population at the expense of all others. Most, if adopted would only make matters worse. This AIRR Newsletter will concentrate on this problem. Here follows the contents of the AIRR's submission to the Margo Commission dated January 1985.

THE CHARACTER OF A NATION IS SHAPED BY IT'S SYSTEM OF TAXATION

This should be the foremost consideration at all stages of enquiry, deliberation and recommendations carried out by the Commission.

Taxes may be considered as falling into two main categories:

1. Those which fall on production. The majority of our taxes are of this type.

2. Those which are imposed on the productive capacity of land.

The first type discourages production and the creation of wealth whilst the latter encourages the maximum utilization of land, rapid development and growth of a wealthy and stable society.

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UNDERLYING CAUSE OF UNREST

Economic injustice and the resultant poverty and unemployment is possibly a greater cause of the present unrest and civil disturbance in R.S.A. than the social injustice which stems from Apartheid.

Even if Apartheid were completely dismantled there would still be poverty, unemployment and economic injustice.

It is far more important to bring about economic justice than universal sufferage- One man, one vote, once without correcting the basic causes of poverty could only reduce R.S.A. to the poverty which exists throughout Africa.

EDITORIAL COMMENT

Events in the last twelve months have proved many of the comments in the letter to the Margo Commission to have been rather prophetic. Whilst "land lies idle for the want of labour, labour idle for the want of land" violence and crime will continue to escalate in R.S.A. Even where quality of life exists it will be overshadowed by fear. The time has come for both our government and the white population to stop wasting tine and gain an understanding of the destructive effects of bad taxation and the resultant economic injustice. Similarly dent let Black South Africans believe that they will be lifted out of poverty merely by dismantling Apartheid or installing a Black government.