Social grants as a form of reparation for apartheid
Many people disingenuously complain that social grants are an unnecessary burden to the taxpayer.
To date, 44% of South Africa’s 60.6 million people rely on their social grants as compared to fewer than 7 million registered personal income taxpayers. Of course, the situation does not look good, and the sustainability of social grants is questionable.
According to the SA Revenue Service, tax revenue from personal income tax is still concentrated at the top. It is estimated that a mere 17.9% of South African taxpayers earn over R500 000 a year, but they account for 52% of all taxable income.
This does not come as a surprise since the apartheid economic design is almost intact, with whites often still holding senior positions and the black majority employed as cashiers, security guards and, in most cases, without jobs.
Many people disingenuously complain that social grants are an unnecessary burden to the taxpayer.
To date, 44% of South Africa’s 60.6 million people rely on their social grants as compared to fewer than 7 million registered personal income taxpayers. Of course, the situation does not look good, and the sustainability of social grants is questionable.
According to the SA Revenue Service, tax revenue from personal income tax is still concentrated at the top. It is estimated that a mere 17.9% of South African taxpayers earn over R500 000 a year, but they account for 52% of all taxable income.
This does not come as a surprise since the apartheid economic design is almost intact, with whites often still holding senior positions and the black majority employed as cashiers, security guards and, in most cases, without jobs.
