EFF’s FISCAL Framework

  1. The EFF government will maximally collect taxes with the aim of a 20% increase in current annual tax collections.
  2. The EFF government will reduce the state debt to under 20% of the GDP.
  3. The EFF government will equitably distribute nationally raised revenue in the ratio of 40% nationally and 60% locally.
  4. Under the EFF government, a minimum of 50% of funds allocated to local government must be used solely to deliver services.
  5. The EFF government will use a build, operate and transfer funding mechanism for infrastructure development.
  6. The EFF government will increase capital gains tax and inheritance tax so as to ease the tax burden of the poor and transfer it to the rich.
  7. The EFF government, including state-owned companies, will abolish tenders and insource all security guards, cleaners, gardeners, drivers and general workers.
  8. The EFF government, including all state-owned companies, will disallow the use of consultants and directly employ people with capacity.
  9. The EFF government will discontinue housing subsidies for ministers.
  10. The EFF government will discontinue the appointment of deputy ministers.
  11. The EFF government will move the Parliament to Pretoria.
  12. The EFF government, including all state-owned entities, will discontinue the rental of buildings. Instead, it will occupy government-owned buildings built by a state-owned construction company.
  13. The EFF government, including all state-owned entities, will use Telkom services for all information and technology related services.
  14. The EFF government, including state-owned entities, will use the services of state-owned banks.
  15. The EFF government will remove all presidential and ministerial spousal support.
  16. The EFF government, including all state-owned companies, will buy all goods directly from manufacturers at a discounted price to leverage economies of scale.
  17. The EFF government will build government-owned storage facilities to store non-perishable goods.
  18. A state-owned mining company will start operating at all coal mines owned by Eskom and will export surplus coal to generate revenue for the fiscus.
  19. The EFF government will nationalise all mines and allocate key shares in South Africa’s mineral and petroleum resources to the Sovereign Wealth Fund.
  20. The EFF government will increase corporate income tax from 28% to 32%, with a 25% dividend tax, in 2020.
  21. The EFF government will increase capital and inheritance gains tax.
  22. The EFF government will introduce education and training taxes on all private companies at a minimum of 2% of total revenue for companies with a turnover of R50 million and more, to be used to fund fee-free quality education.
  23. The EFF government will increase taxes on speculative capital inflows to 60%.
  24. The EFF government will raise an additional R100 billion annually through curbing illicit financial flows, including the expropriation of multinational companies which participate in tax avoidance and institute a stronger penalty regime with jail sentences for directors and executives.
  25. The EFF government will pass an Anti-Avoidance of Tax Act to illegalise all forms of tax avoidance and will ensure that all those found to be engaged in tax avoidance and tax base erosion are imprisoned.
  26. The EFF will establish a multi-disciplinary cross-agency task team, independent from the South African Revenue Services (SARS) and National Treasury, which will include officials from the National Treasury, Financial Intelligence Centre (FIC), South African Reserve Bank (SARB) and SARS, to gather and publish reliable statistical data on illicit financial flows.
  27. The EFF government will launch a Judicial Commission of Inquiry into illicit financial flows since 1990, headed by a Constitutional Court Judge, by 2020. The Commission will include local and international experts on illicit financial flows and it will make specific recommendations in respect of past and future transgressions, prevention, detection and the imposition of suitable punitive and restorative measures.
  28. The EFF government will adopt a long-term infrastructure financing model.
  29. The EFF government will combine all Municipalities’ Pension Funds into one Municipal Employees Pension Fund (MEPF), with an investment mandate that focuses on Municipal Infrastructure Development.
  30. The EFF government will reduce the cabinet to half of its current size and proscribe the positions of deputy ministers.
  31. The EFF government will reduce VAT to 14%.
  32. The EFF government will highlight employment targeting as the primary measure of fiscal

EFF Manifesto 2019

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