Statement on the newly promulgated Tax Laws Amendment Acts

14 January 2016

The South African Communist Party (SACP) has noted the promulgation into law, of the Tax Laws Amendment Act and the Tax Administration Laws Amendment Act of 2015. Among others, this means that all the retirement reforms that the National Treasury has been pushing will come into effect on 1 March 2016. The SACP is concerned about the process that was followed with far reaching implications for social dialogue in our country.

There must be extensive consultation, including reasonable time and commitment by social actors, in this case mainly the government and labour, to persuade each other. The National Economic Development and Labour Council, Nedlac, was created for this purpose.

Provident funds, like all retirement funds, are hard-earned workers’ wages. Control over workers funds rests primarily with workers. Anyone who wants to participate in the management of workers’ funds must do so following agreement with them.

Measures that take away the right of workers to exercise their democratic control over their own funds will erode their rights. Already, the entire wealth produced by workers is appropriated by big capital through exploitation. They have no say over it whatsoever, which is why both workplace workers’ and the broader socialist struggle remain fundamental toward resolving this injustice.

The President and our government – in this case the National Treasury – must not take workers’ voice lightly, even if this is proclaimed to be in their best interests! 

Statement issued by the SACP, 14 January 2016