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Shocking statistics predict future tax increases
According to statistics released by the South African Institute of Race Relations, social grant expenditure is expected to rise from to R88-bn to approximately R113-bn this social year.
This is because of over 16-m social grant beneficiaries being registered for 2013/14.
Acting head of research at the Institute, Lerato Moloi, fears that if the number of social grant beneficiaries keep increasing by extreme numbers, then South Africa’s tax-base will not grow fast enough to keep supporting the millions of vulnerable individuals who rely on monthly cash transfers from the State.
The shocking statistics also reveal that there are more people on welfare than there are with jobs, as for every 90 people with formal employment, 100 people are on social grants.
The highest proportions that will be spent will be on old-age pension and child support grant transfers, at 39 per cent and 37 per cent respectively.
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