More On The Give It Back Campaign

Can be found on Solidarity’s website:

 The maintenance of law and order is generally regarded as the primary duty of the state and serves as a justification for taxation. Despite the South African government spending R1 of every R10 of its budget on ‘public order and safety’, it fails to stem the tide of crime. To compensate for this failure, ordinary South Africans spend significant additional amounts to make South Africa a safer place. Similar to how taxpayers are allowed tax rebates when they pay for their own medical care, so should they be allowed tax rebates when they pay for their own safety and security.

EXAMPLE

A taxpayer earning R300 000 per year pays around R83 350 in income tax, fuel levies and value-added tax alone every year. This taxpayer could be expected to pay an additional R10 400 annually to protect his or her person and family in a way the state was supposed to do. R10 400 is a reasonable estimate of total contributions such taxpayers make to providers of security services such as armed response, vehicle tracking companies and household insurance providers. Even so, most of the actual costs of crime prevention are not taken into account, because they are not of a readily calculable nature. These costs include moving to safer neighbourhoods, not going for evening strolls, the psychological trauma in anticipation of and following crime, and so on.

Income tax relief for private security measures, because the state does not succeed in protecting its citizens, is a new concept in the South African tax system. We suggest that the introduction of such tax relief measures be investigated and implemented without delay.

Tax relief on security related services can be implemented speedily and without much difficulty. Such a step would make it easier for tax payers to protect themselves and their fellow South Africans.

Sign the petition on Solidarity’s website.

According to Piet le Roux, senior researcher at the Solidarity Research Institute, National Treasury has been receptive to the idea and the they will enter discussions around having this rebate implemented this year.