ANC eyes new super tax plan
31 July 2010, 10:40
By Sibusiso Ngalwa
Political Bureau
The ANC wants its high-flying leaders to lead by example and reduce "conspicuous consumption" as the party prepares to clamp down on the rich by imposing higher taxes on their expensive cars and luxury homes.
The proposal is contained in the ruling party's discussion document on economic transformation for the upcoming national general council - a midterm policy review gathering.
To promote equality in society, the ruling party suggests "discouraging conspicuous consumption by the rich through taxes on luxuries such as high-powered cars and homes, as well as consistent messaging and leadership by example by the government and the alliance".
The issue will be debated at the council in Durban in September. It comes in the wake of criticism from its own tripartite alliance members and opposition parties of the opulent lifestyles enjoyed by government ministers and politicians.
President Jacob Zuma's cabinet - which was elected to power in the ANC in 2007 on a pro-poor ticket - was criticised for splashing out on luxury cars - costing between R500 000 and R1.2 million each - when they came into office last year.
The long stay in expensive hotels by ministers Siphiwe Nyanda of Communications, Nathi Mthethwa of Police and Higher Education's Blade Nzimande - the country's leading communist - also attracted a slew of negative reports against the executive.
Cosatu has often criticised what it described as a growing trend of business people in the ANC of what it and the SACP term crass materialism.
ANC secretary-general Gwede Mantashe told journalists on Thursday the party had to guard against losing its character as the party of the poor.
Although the ANC discussed regulating the business interests of its members and leaders three years ago, guidelines have yet to be drawn up. Mantashe said their deadline for developing these was August.
Another discussion paper, on organisational renewal, warned against the ANC being the platform for a battle for state resources, power and wealth.
Mantashe cited an example - reiterating his predecessors' perennial concerns - that before 1990, ANC members were driven by passion and liberation values, prepared to risk their lives, whereas in post-apartheid SA, party membership meant power and wealth.
The leftists in the alliance - especially in the SACP and Cosatu - coined the phrase "tenderpreneurs", referring to ANC leaders and members pillaging state contracts by using political connections.
They cited Youth League leader Julius Malema, whose stint as provincial secretary of the youth league in Limpopo was blended with multimillion-rand contracts from the provincial government.
This has led to ugly power struggles, in some instances turning violent.
Mantashe said they would also be discussing measures to discourage dirty lobbying and the flow of money during party conferences to sway outcomes.
"This ranges from the availability of seemingly vast resources to organise lobby-group meetings, travel and communications, to allegations of outright bribing and paying of individuals to disrupt meetings," says the ANC document on organisational renewal.
Mantashe said the party wanted to introduce stiff penalties, including expulsion, for ill-disciplined and power-hungry leaders. The party also proposed penalties to complement its disciplinary code, to deal with power struggles and factionalism.
These included disqualification as a candidate or delegate; expulsion; and naming and shaming of candidates or members guilty of such offences.
Political Bureau
The ANC wants its high-flying leaders to lead by example and reduce "conspicuous consumption" as the party prepares to clamp down on the rich by imposing higher taxes on their expensive cars and luxury homes.
The proposal is contained in the ruling party's discussion document on economic transformation for the upcoming national general council - a midterm policy review gathering.
To promote equality in society, the ruling party suggests "discouraging conspicuous consumption by the rich through taxes on luxuries such as high-powered cars and homes, as well as consistent messaging and leadership by example by the government and the alliance".
The issue will be debated at the council in Durban in September. It comes in the wake of criticism from its own tripartite alliance members and opposition parties of the opulent lifestyles enjoyed by government ministers and politicians.
President Jacob Zuma's cabinet - which was elected to power in the ANC in 2007 on a pro-poor ticket - was criticised for splashing out on luxury cars - costing between R500 000 and R1.2 million each - when they came into office last year.
The long stay in expensive hotels by ministers Siphiwe Nyanda of Communications, Nathi Mthethwa of Police and Higher Education's Blade Nzimande - the country's leading communist - also attracted a slew of negative reports against the executive.
Cosatu has often criticised what it described as a growing trend of business people in the ANC of what it and the SACP term crass materialism.
ANC secretary-general Gwede Mantashe told journalists on Thursday the party had to guard against losing its character as the party of the poor.
Although the ANC discussed regulating the business interests of its members and leaders three years ago, guidelines have yet to be drawn up. Mantashe said their deadline for developing these was August.
Another discussion paper, on organisational renewal, warned against the ANC being the platform for a battle for state resources, power and wealth.
Mantashe cited an example - reiterating his predecessors' perennial concerns - that before 1990, ANC members were driven by passion and liberation values, prepared to risk their lives, whereas in post-apartheid SA, party membership meant power and wealth.
The leftists in the alliance - especially in the SACP and Cosatu - coined the phrase "tenderpreneurs", referring to ANC leaders and members pillaging state contracts by using political connections.
They cited Youth League leader Julius Malema, whose stint as provincial secretary of the youth league in Limpopo was blended with multimillion-rand contracts from the provincial government.
This has led to ugly power struggles, in some instances turning violent.
Mantashe said they would also be discussing measures to discourage dirty lobbying and the flow of money during party conferences to sway outcomes.
"This ranges from the availability of seemingly vast resources to organise lobby-group meetings, travel and communications, to allegations of outright bribing and paying of individuals to disrupt meetings," says the ANC document on organisational renewal.
Mantashe said the party wanted to introduce stiff penalties, including expulsion, for ill-disciplined and power-hungry leaders. The party also proposed penalties to complement its disciplinary code, to deal with power struggles and factionalism.
These included disqualification as a candidate or delegate; expulsion; and naming and shaming of candidates or members guilty of such offences.
- This article was originally published on page 1 of Saturday Star on July 31, 2010
Durban
