THE FINANCIAL EFFECT OF #FEESMUSTFALL ON INDIVIDUAL TAXPAYERS

Yıl 2019, , 17 - 32, 17.06.2019

Anneke Maré Moolman Lerike Jacobs

https://doi.org/10.34109/ijefs.201911102

Cited By: 1

Öz

The #FeesMustFall campaign evolved from a demand for lower fees for higher
education to fee-free higher education in merely two years, necessitating extensive
reconsideration of the state budget. Over the same period, marginal tax rate and
value added tax (VAT) increases have been felt by South African individual
taxpayers. Therefore an exploratory, document analysis has been performed to
determine the extent to which the #FeesMustFall campaign has been shifted to the
individual taxpayer between the 2015 and 2019 years of assessment. The findings
indicate that the demand for increased financial support of students led to the
recent VAT and marginal tax rate increases, but that tax revenue is actually
declining: the VAT increase has partially covered the increase in social grants to
protect the poor from the VAT increase, and the marginal tax rate increase is
resulting in reduced growth in tax revenue collection as individual taxpayers are
overburdened and therefore, tax avoidance is increasing while productivity is
decreasing. The present study provides taxpayers with clarity on the recent tax
increases and emphasises to National Treasury that any further tax increase would
be to the country’s detriment.

Anahtar Kelimeler

FeesMustFall, tax rate increases, VAT increase, tax budget, free higher education

Kaynakça

• Allison, S. 2015. #FeesHaveFallen: A big day in Pretoria, with a Zero outcome. http://www.dailymaverick.co.za/article/2015-10-23-feeshavefallen-a-big-day-inpretoria-with-a-zero-outcome/#.V5M7kqIj4WA. Accessed 2016/07/23.
• Areff, A. & Spies, D. 2017. Zuma announces free higher education for poor and working class students. https://www.news24.com/SouthAfrica/News/zumaannounces-free-higher-education-for-poor-and-working-class-students-20171216. Accessed 2018/05/18.
• Bateman, B. & Bendile, D. 2016. University councils likely to implement 8% fee increase. http://ewn.co.za/2016/09/19/University-councils-likely-to-implement-8- percent-fee-increase. Accessed 2016/11/21.
• Bateman, C. 2017. SA has world’s most progressive tax structure – but it’s not reducing poverty. https://www.biznews.com/in-focus/2017/07/25/sa-progressivetax-structure-oxfam/. Accessed 2018/06/20.
• Bernardo, C. 2015. 0% increase may cost state R2.4 billion. http://www.iol.co.za/news/politics/0-increase-may-cost-state-r24-billion-1940592. Accessed 2016/07/23.
• BusinessTech. 2016. The 2016 SA budget in a nutshell. https://businesstech.co.za/news/finance/114048/here-is-the-2016-budget-in-anutshell/. Accessed 2018/06/22.
• BusinessTech. 2017. What the fees commission says about using your taxes to fund free university. https://businesstech.co.za/news/finance/210565/what-thefees-commission-says-about-using-your-taxes-to-fund-free-university-in-sa/. Accessed 2018/06/21.
• Coomer, J. 2017. This is who is paying South Africa’s tax. https://businesstech.co.za/news/finance/207631/this-is-who-is-paying-southafricas-tax/. Accessed 2018/06/20.
• Cronje, J. 2018. South Africans to pay higher VAT for first time in two decades. https://www.fin24.com/Budget/south-africans-to-pay-higher-vat-for-first-time-intwo-decades-20180221. Accessed 2018/06/21.
• Davis, R. 2018. Budget 2018: Tax increases set to hit ordinary South Africans hard. https://www.dailymaverick.co.za/article/2018-02-22-budget-2018-taxincreases-set-to-hit-ordinary-south-africans-hard/#.WxZtjIq-nIU. Accessed 2018/06/05.
• Dentlinger, L. 2018. Govt’s new spending commitments to hit large municipalities. http://ewn.co.za/2018/02/22/govt-s-new-spending-commitmentsto-hit-large-municipalities. Accessed 2018/06/22.
• Department of Higher Education and Training. 2013. White paper for postschool education and training. http://www.dhet.gov.za/SiteAssets/Latest%20News/White%20paper%20for%20p ost-school%20education%20and%20training.pdf. Accessed 2016/07/28.
• Department of Higher Education and Training. 2016. Ministers Nzimande and Nhleko agree on the urgent need for the establishment of the rule of law on South African campuses. https://www.wits.ac.za/media/wits-university/news-andevents/documents/Nzimande%20Nhleko%20on%20Campus%20Disturbances.pdf . Accessed: 2016/05/23.
• DHET see Department of Higher Education and Training. Du Plessis, C. 2017. Gordhan prepares for tough budget speech. https://mg.co.za/article/2016-02-18-gordhan-prepares-for-tough-budget-speech/. Accessed 2017/04/25.
• Dube, N. 2017. Tough times ahead as cost of living soar. https://www.news24.com/SouthAfrica/Local/Stanger-Weekly/tough-times-aheadas-costs-of-living-soar-20171101. Accessed 2018/06/25.
• Ensor, L. 2018. Budget 2018 in a nutshell: first VAT increase in 25 years. https://www.businesslive.co.za/bd/economy/2018-02-21-budget-2018-in-anutshell-first-vat-increase-in-25-years/. Accessed 2018/06/21.
• Fataar, A. 2015. Why the fees must fall. Socialistworker.org October 27. https://socialistworker.org/ 2015/10/27/why-the-fees-must-fall. Accessed 2016/07/23.
• Fin24. 2018. Rand volatile as all eyes turn to National Budget. https://www.fin24.com/Budget/rand-volatile-as-all-eyes-turn-to-national-budget20180221. Accessed 2018/06/25.
• Go, D.S., Kearney, M., Robinson, S. & Thierfelder, K. 2004. An analysis of South Africa’s Value Added Tax. CiteSeerX.
• Groenewald, Y. & Mitchley, A. 2018. Plans for free higher education on track - Gigaba. https://www.fin24.com/Economy/plans-for-free-higher-education-ontrack-gigaba-20180116. Accessed 2018/05/18.
• Harmse, J. 2018. Be Informed: The Impact of Free Education. https://educonnect.co.za/informed-impact-free-education/. Accessed 2018/06/22.
• Leech, N.L. & Onwuegbuzie, A.J. 2009. A typology of mixed methods research designs. Quality & quantity, 43(2):265-275.
• Leuvennink, J. 2017. Mounting debt-service costs crowd out social and economic spending. https://www.fin24.com/Budget/Budget-andEconomy/mounting-debt-service-costs-crowd-out-social-and-economic-spending20171025. Accessed 2018/06/25.
• Loo, C. 2018. Top Nine Nelson Mandela Quotes About Education. https://borgenproject.org/nelson-mandela-quotes-about-education/. Accessed 2018/09/06.
• Mandy, K. 2018. Has South Africa reached its limit on tax increases? https://www.pwc.co.za/en/press-room/south-africa-reached-limit-on-taxincreases.html. Accessed 2018/06/04.
• Moolman, A. & Jacobs, J. 2018. Responses to the short-term effect of the zero per cent fee increase on South African universities. South African Journal of Higher Education, 32(1):178-191.
• National Treasury. 2017a. National Treasury budget highlights. http://www.treasury.gov.za/documents/national%20budget/2017/sars/Budget%20 2017%20Highlights.pdf. Accessed 2017/05/02.
• National Treasury. 2017b. The role of the National Treasury. http://www.treasury.gov.za/nt/info.aspx. Accessed 2017/05/05.
• National Treasury. 2018a. 2018 Budget Highlights. National Treasury.
• National Treasury. 2018b. 2018 Budget Review. National Treasury.
• National Treasury & SARS. 2017. Tax Stats 2017.
• News101. 2016. Estimated R460 million cost of damage during #FeesMustFall protest. http://www.news101.co.za/2016/06/09/estimated-r460-million-costdamage-feesmustfall-protest/. Accessed 2016/07/23.
• Pandor, G.N.M. 2018. Minister Pandor's speech introducing the Department of Higher Education and Training's 2018 Budget Vote. http://www.dhet.gov.za/. Accessed 2018/06/05.
• Personal Finance. 2018. Free higher education kicks in immediately. https://www.iol.co.za/personal-finance/free-higher-education-kicks-inimmediately-13468587. Accessed 2018/05/18.
• Porumbescu, G. 2017. Linking transparency to trust in government and voice. The American Review of Public Administration, 47(5):520-537.
• Rensburg, I. 2016. Communiqué by Prof Ihron Rensburg to parents/guardians of UJ students. http://www.uj.ac.za/newandevents/Pages/Communiqu%C3%A9‐by‐Prof‐Ihron‐Re nsburg‐toparents‐‐guardians‐of‐UJ‐Students.aspx. Accessed 2016/05/23.
• SARS see South African Revenue Service. Schneider, F. 2017. The Burden of the South African Taxpayer and Tax Freedom Day. https://www.bdo.co.za/en-za/insights/2017/tax/the-burden-of-the-southafrican-taxpayer-and-tax-freedom-day. Accessed 2018/06/21.
• Schoonenboom, J. & Johnson, R.B. 2017. How to Construct a Mixed Methods Research Design. KZfSS Kölner Zeitschrift für Soziologie und Sozialpsychologie, 69(2):107-131.
• SARS. 2017. SARS announces the preliminary outcome of revenue collections for 2016/17. http://www.sars.gov.za/Media/MediaReleases/Pages/03-April-2017- --SARS-revenue-collection-2017.aspx. Accessed 2018/06/22.
• SARS. 2018a. Income tax rates. http://www.sars.gov.za/Tax-Rates/IncomeTax/Pages/default.aspx. Accessed 2018/06/25.
• SARS. 2018b. Rates of tax for individuals. http://www.sars.gov.za/TaxRates/Income-Tax/Pages/Rates%20of%20Tax%20for%20Individuals.aspx. Accessed 2018/06/20.
• Stats SA. 2017. Infographic: Government's spending priorities. http://www.statssa.gov.za/?p=10730. Accessed 2018/06/21.
• The Presidency. 2016. President Zuma announces commission of inquiry into Higher Education Funding and other issues. http://www.dhet.gov.za/SiteAssets/Latest%20News/January%202016/PRESIDEN T%20ZUMA%20ANNOUNCES%20COMMISSION%20OF%20.pdf. Accessed 2018/05/18.
• The Presidency. 2017. Release of the Report of Commission of Inquiry into the Feasibility of making Higher Education and Training fee-free in South Africa. http://www.thepresidency.gov.za/press-statements/release-report-commissioninquiry-feasibility-making-high-education-and-training. Accessed 2018/05/18.
• Zanten, M.V. 2016. Tax Collection Policies: A comparison between antiquity and modern South Africa. University of Pretoria.