PRESS RELEASE: Cut Costs, Don't Raise Taxes, says Referendum Party

Cut costs, don’t raise taxes, says Referendum Party

‍(Afrikaans version below)

The Referendum Party is horrified at the prospect of tax increases being announced in the budget this week. By the Treasury's own admission, further tax increases would be bad for economic growth and personal tax levels are at their limit.

Margaret Thatcher famously said, "The problem with socialism is that you eventually run out of other people's money." Well, South Africa has arrived at that point.

There is only one path to economic prosperity, and that is to create a business-friendly environment which encourages economic growth and employment. The state needs to become much smaller, and in all but the essential aspects of government, get out of the way of business.

To cut costs, South Africa should sell off or close down non-essential, loss-making state entities, slash costs in the bloated public sector, and begin employing on merit.

In South Africa, the President earns 58 times the minimum wage and MPs 22 times. In comparison, the ratios in the US are 28x and 12x, whilst in the UK they are 7x and 4x. Our government is being overpaid to under-deliver.

Phil Craig, leader of the Referendum Party says, “We applaud suggestions by Joel Pollak, the frontrunner to become the US's Ambassador to South Africa, that South Africa should adopt a federal system of government, and create low-tax free trade zones around Cape Town and Johannesburg to encourage growth. We believe in going one step further; that the Western Cape should break away from South Africa altogether and become one giant 'Special Economic Zone'. In doing so, it can become the economic tiger of Southern Africa to the benefit of all.

DATE: 17 February 2025

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Sny koste, moenie belasting verhoog nie, sê Referendum Party

Die Referendum Party is geskok oor die moontlikheid dat belastingverhogings hierdie week in die begroting aangekondig kan word. Volgens die Tesourie se eie erkenning sal verdere belastingverhogings nadelig wees vir ekonomiese groei, en persoonlike belastingvlakke is reeds op hul maksimum.

Margaret Thatcher het eens gesê: “Die probleem met sosialisme is dat jy uiteindelik ander mense se geld opgebruik.” Wel, Suid-Afrika het daardie punt bereik.

Daar is slegs een pad na ekonomiese welvaart, en dit is om ‘n besigheidsvriendelike omgewing te skep wat ekonomiese groei en werkskepping aanmoedig. Die staat moet baie kleiner word en, behalwe vir noodsaaklike regeringsfunksies, moet dit uit besigheid se pad bly.

Om koste te sny, moet Suid-Afrika: Nie-noodsaaklike, verliesmakende staatsondernemings verkoop of sluit; die opgeblaasde openbare sektor se uitgawes drasties verminder, en slegs op meriete aanstel in die staatsdiens.

In Suid-Afrika verdien die President 58 keer die minimum loon en LP’s 22 keer. Ter vergelyking is die verhoudings in die VSA 28x en 12x, terwyl dit in die VK 7x en 4x is. Ons regering word oorbetaal vir onderprestasie.

Phil Craig, leier van die Referendum Party, sê: "Ons verwelkom die voorstelle van Joel Pollak, die voorloper om die VSA se ambassadeur in Suid-Afrika te word, dat Suid-Afrika ‘n federale regeringsisteem moet aanvaar en lae-belasting vryhandelsones rondom Kaapstad en Johannesburg moet skep om groei aan te moedig. Ons glo egter dit moet ’n stap verder geneem word: die Wes-Kaap moet van Suid-Afrika af wegbreek en ‘n enorme ‘Spesiale Ekonomiese Sone’ word. Op hierdie manier kan dit die ekonomiese tier van Suider-Afrika word – tot voordeel van almal."

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