LETTER: Offensive tax views - Business Day, 23 September 2016

By Frans Cronje 

IF THE former minister of finance, Nhlanhla Nene, is quoted correctly saying "we" must take responsibility for the student fees crisis and be prepared to pay more tax, and higher fees, then his views are offensive (Nhlanhla Nene says parents must help to solve fees crisis ‘amicably’).

Who is the "we" he talks about? The reason SA is short of funding for student fees is, firstly, that government and governing party officials steal vast amounts from the fiscus.

Secondly, even greater amounts are wasted on badly run state-owned enterprises, an inflated and unproductive public service and wasteful government tenders.

Thirdly, the socialist policies of the government and the ANC are hostile to the investment and entrepreneurship necessary to secure the economic growth needed to increase government revenues.

It is ironic that many of the student leaders, and those supporting them, are among the staunchest supporters of the very socialist policies that have caused the funding crisis.

Only much higher levels of economic growth, accompanied by much lower levels of wastage by the state, can solve the student fees crisis. To suggest that higher taxes are the answer is populist nonsense.

Frans Cronje 
CEO, Institute of Race Relations 

Read the letter on Business Day here