A R150bn annual ‘bonsela’ for elites gaming SA’s ludicrous BEE laws
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Economic issues only tend to grab attention when their consequences have a direct impact on our pockets. South Africans are in one of those rare moments right now after the ANC was blocked from jacking up VAT from 15% to 17% to fund an increase for public sector employees who already receive the highest share of tax in the world. So a World Bank report quantifying the economic cost of SA’s massive ‘BEE premium’ put this elite-benefitting policy into the spotlight in a country where Black unemployment has risen from 6m to 11m since 2007. In this fascinating interview, Gabriel Crouse a fellow at the prestigious Institute of Race Relations, estimates that ending BEE would enable VAT to actually be cut to 11.5%. Notably, the BEE Scam was also highlighted by the Zondo Commission. Crouse spoke to BizNews editor Alec Hogg.
