Pravin Gordhan told dozens of journalists in the embargoed pre-Budget press conference none of them need worry about the jump from 41% to 45% in the top marginal income tax rate as it is “other people” who will be paying it. Then followed up suggesting more of the same is coming by telling us his economic guru Tony Atkinson believed 65% was the appropriate level.
Here’s a different perspective from Shaun Rozyn, former executive director at GIBS. Now based in Saudi Arabia, highly qualified Rozyn shared how, over coffee at the Academy in Riyadh, he and friends mused that two South Africans are driving leadership development; five Saffers are doing assessment work; and the local SAP consultancy is run by a South African with another 75 of his countrymen in the office.
Apparently there are 5,000 Saffers working for Saudi Aramco. “My company, SABIC, has about 250 Saffers. This is the example of just one country. It is both such a compliment to the skill quality of South Africans but also a little sad for the home country.” And a warning after a Budget where the top 103,000 taxpayers are being told to pay 40% of a total R28bn in extra taxes raised. The consequences are pretty obvious. Except, it seems, for politicians.
