Brea, CA -- (SBWIRE) -- 10/21/2015 -- The Justice and Peace Commission wants a system of periodic review of zero rated goods, the super rich taxed more, and a delay in VAT increase until such a time that the government has a comprehensive social security system.

In a submission to the Davis Tax Committee, SACBC Justice and Peace commission called for tax increase on the wealthy, instead of VAT increase that would hurt the poor more than the rich.

"We propose that additional income tax brackets be introduced to increase revenue for the government, rather than the introduction of a higher VAT rate." says Bishop Abel Gabuza, chairperson of the Justice and Peace Commission for the Southern African Catholic Bishops' Conference.

In its submission, the commission says that the government should retain the zero rated basket and should defer from VAT hikes until such a time that the government has managed to establish a comprehensive social security system.

"It has also been argued that the intended social goals of zero rating of food items can be achieved more efficiently through the spending side of the budget, especially by targeted and direct social transfers. We are as yet to see social transfer interventions that comprehensively and effectively address the food insecurity problem and ensure adequate nutrition for the poor in South Africa. Until we see this realised through the spending side of the budget, we shall continue to stand in solidarity with the working poor and the unemployed and argue for extensive zero rating." says Bishop Gabuza.

The commission has asked the government to establish a mechanism for periodic review of zero rated basket to ensure that it is optimally targeted towards the poor.

"In the light of this targeting deficiency, we recommend that the National Treasury establishes a mechanism for periodic review of zero rate basket to ensure that these food items correspond with the spending patterns of the poor and accurately reflect their spending habits, i.e. to cover the food that are actually consumed by the poor." states Bishop Gabuza.

The commission believes that the periodic review of the zero rated basket would of necessity for a possible periodic changes in the composition and number of items to feature in the zero rate basket.

"In the light of the periodic review mechanism, we therefore submit that the extension of the zero rating be considered in tandem with the changes in the consumption patterns of the poor." says Bishop Gabuza.

This is a contrast to the position of the Davis Tax Committee which discouraged extension of the zero rated basket.

Commenting on its submission, Bishop Gabuza insisted on the need to develop a more transformative and distributionary tax system.

"We support government efforts to expand the tax base and increase revenue collection so as to finance the National Health Insurance and other social programmes. This should however be done through a progressive tax model, and not through VAT which affects the poor more than the rich. Any tax reform should be assessed in terms of its impact on the poor." added Bishop Gabuza.

About Southern African Catholic Bishops' Conference
The Southern African Catholic Bishops' Conference (which is comprised of the Catholic Bishops of Botswana, South Africa and Swaziland) is an organisation, approved by the Holy See, of diocesan Bishops and others equivalent in Canon Law, serving in the ecclesiastical Provinces of Cape Town, Durban, Pretoria, Johannesburg and Bloemfontein, in and through which members exercise their pastoral office jointly through the pooling of wise counsel and experiences in matters concerning their common interest in order to promote that greater good which the Church offers humankind especially through formation and programmes of the apostolate which are fittingly adapted to the circumstances of the age.

For further information or interviews please contact:
Bishop Abel Gabuza
Chairperson of the Justice and Peace Commission for the Southern African Catholic Bishops' Conference
Tel. 053 831 1861 or 053 831 1862
Email: dagabuza@gmail.com
Website: http://sacbcjusticeandpeace.org/