A Hint That All's Not Lost
Watching the debate on the State of the Nation address [SONA] was a relief. After witnessing Parliament descend into a brawl between the EFF and security officers, citizens came face to face with what was a damning assessment of our democracy 20 years after apartheid. Would we recover, we asked ourselves? A few days later the debate on Sona followed. No doubt the exchanges were heated and debate robust - and there was no need to eject anyone from the House. This is what we expect of our legislators. You can disagree and debate without turning the whole place into a mass brawl.
When is was President Jacob Zuma's turn to respond on the debate, one couldn't but notice his reconciliatory tone. This was in stark contrast to the hardening of attitudes we have come to see from some of his fellow comrades. Where we had seen the use of brutal power the week before, Zuma chose to use his opponents and responding to the issues they had raised. His admission that the jamming incident was unfortunate and would never be repeated was a sign of leadership.
We will see the same demonstration of leadership when he answers questions of in the National Assembly on March 11 where the Nkandla matter will come up? The issue has divided a nation and become and albatross around the president's neck. We need a demonstration of leadership in dealing with it. The political bulldozing tactics we have seen won't work. President Zuma departed from his securocrats and hawkish comrades in how he handled the post-Sona debate. He can, and should, do the same in dealing with this matter.
Talking about matters parliamentary, the tabling of the National Budget last week by Finance Minister Nhlanhla Nene was a fine balancing act. Nene had warned us in October that tough times lay ahead. Government revenue is low and not enough to cover expenditure. In such a situation it is tempting to cut expenditure in a manner that can potentially hurt the poor. We commend Nene for protecting spending on government's core social obligations, the social grant system being the mainstay.
Though some may argue that the increase of 4.4 percent for the grants is not sufficient, given the narrow fiscal space Treasury has and the R120 billion the country spends on grants for the poor, our social welfare system must be praised for the progress it has made since the dawn of our democracy. We must build on it and protect it at all costs. With the fiscus facing pressure, we knew taxes were going to be increased to plug budget shortfalls and raises the much needed funds. Again, we must applaud Nene for not succumbing to the temptation to increase VAT.
The poor are disproportionately affected by VAT as the tax is the same for them and the rich. Moreover, an increase in VAT could eat into the poor's limited income. There must be a quid pro quo for the poor if the government is going to increase VAT - for example, full implementation of the proposed National Health Insurance scheme. The 1 percent increase in personal income tax, though relatively small, is on that high income taxpayers will pay with a grudge. When one contributes to the tax system but has to send one's child to a private school for a good education, visit a private hospital for good health care and invest in private security for the safety of one's family, is it inevitable that questions will arise: What is the tax system doing for me?
It is at this point where people feel they are not getting their money's worth that they become negative about taxes. It is worsse when they see the system working for those who occupy political office or see the wasting of public funds through corruption and other irregularities. Citizens would generally accept higher taxes if they got the sense they were paying for a well-functioninhg society with decent public services and a universal safety net. The government must come to the party in dealing with corruption, mismanagement, unbudgeted and wasteful expenditures.
The Swedes have done it in spite of their country having one of the highest income taxes. The Swedish Tax Agency is said to be one of the most highly trusted public bodies in that country. The South African Revenue Service was on its way there until recently when we saw its dirty line all over the place. That does not engender confidence. The quicker that dirty linen is taken to the laundry the better for the image of the tax authority. To move our country forward we all must do out bit.
