SA-TIED Seminar Series: Exploring the tax trade-offs of financing social protection in South Africa

Join us for a session of the SA-TIED Seminar Series featuring Maya Goldman and Ntuthuko Hlela, who will present their research on the fiscal implications of financing social protection in South Africa. Their Working Paper, "Tax financing options for new social protection instruments: The equity implications of taxing more to expand the South African social security system," examines the trade-offs between increasing taxes and expanding social assistance programmes, such as the Social Relief of Distress (SRD) grant and a basic income grant (BIG).

Key discussion points include: 

• Impact of tax-financed social protection: Insights into how raising taxes to fund social assistance could affect poverty and inequality, with a focus on different grant expansion scenarios—including an increased SRD grant and the introduction of a universal or working-age basic income grant.
• Policy recommendations: Strategies for financing social protection in a way that maximises poverty reduction while minimising economic distortions. The session will explore the trade-offs between different tax instruments, including VAT increases, PIT adjustments, and targeted surcharges.
• Revenue generation and equity considerations: The implications of relying on different tax bases, such as consumption versus income taxation, and how these choices affect income distribution and social mobility.
• International lessons: How countries with similar economic structures have approached financing social protection, and what South Africa can learn from these experiences in designing equitable and sustainable tax policies.

This virtual seminar is ideal for policymakers, researchers, practitioners, academics, and anyone interested in social welfare and economic development on both a national and international scale.

Register here to join the seminar.