Incentive

2008-11-17 00:00

South Africans are notoriously reluctant to save. The news that the country’s savings rate dropped into negative territory in the second quarter of this year is highly alarming, especially as end-of-year festivities and traditional overspending are imminent.

Similar disquieting news comes from two international credit rating agencies. They have adjusted South Africa’s outlook from stable to negative in the light of a looming world recession. Given the fact that South Africa is historically dependent upon foreign investment for development, this has implications for employment levels.

There is clearly a need to save, not only for individual futures but also for that of the country. Yet those who do so are penalised by taxation. Asked about this recently, all the Minister of Finance Trevor Manuel could manage was the feeble old joke that death and taxes are unavoidable. Changing circumstances require a rethink: the taxman should provide greater encouragement to savers.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.