COSATU wants to hike taxes in bid to financially rescue South Africa

COSATU wants to hike taxes in bid to financially rescue South Africa

- COSTAU wants to increase taxes in South Africa, especially targeting the rich

- The trade union feels that this will help save the nation from its current financial difficulties

- The federation claims this will allow more resources to help stimulate the economy

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COSATU has a theory on how to pull South Africa out of its current economic slump, but citizens won't be pleased to hear it.

BusinessLIVE reports that the trade union wants to increase taxes, with the wealthy in particular targeted by the proposed hikes.

The ANC allies feel this would go a long way towards bailing out the government, with the state then able to pump more funding into the economy.

COSATU believes the government increasing this revenue will, in turn, enable job creation and developmental objectives.

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Finance Minister Tito Mboweni recently revealed that the country's current budget shortfall would exceed 60% of GDP for the next few years.

Treasury has already indicated that it is contemplating a tax hike in a bid to plump up state revenue.

COSATU suggested that company taxes should rise to around 30%, which would generate approximately R25 billion.

Citizens who earn over R1 million annually could raise a further R5 billion with an increase to 45%.

A new 'solidarity' tax suggested by the union would impose heftier tax burdens on the wealthy in favour of a lighter burden on those who earn far less, gathered.

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