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COSATU Flag.
Congress of South African Trade Unions (COSATU) has suggested exploring alternative revenue sources, such as a one-year contribution holiday for the Government Employees Pension Fund.
This suggestion comes ahead of Finance Minister Enoch Godongwana‘s Budget Speech in Cape Town on Wednesday afternoon
COSATU Parliamentary Coordinator, Matthew Parks, says the one-year contribution holiday is the last option for government but has been done before.
However, Parks says government must explore all options first, like addressing loopholes seen in tax collection to improve revenue.
“That’s always an emergency option, we don’t think we are in an emergency but if government becomes so broke and couldn’t afford things, that’s always an option. It has been done before in the Mandela Administration to give the fiscus some support. We think the first priority besides growing the economy and creating jobs and that generating tax the state needs to fund public services, its also about reducing wasteful expenditure. But the most critical things is on the revenue side to reduce tax loopholes that the wealth exploit and also to make sure that SARS has the resources it requires to improve tax compliance.”
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