Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego

The document argues that a Universal Basic Income Guarantee (UBIG) for South Africans aged 18 to 59 is fiscally viable and would stimulate economic growth while reducing poverty. Based on research with Applied Development Research Solutions (ADRS), it proposes three implementation pathways (low, medium, and high speed) from 2023 to 2030. The analysis suggests that UBIG would increase GDP growth to between 2.8% and 3.5% by 2030 and reduce poverty by 67% over the next two decades. Financing options include a wealth tax on the top 1% of the population, a Social Security Tax (SST), and VAT returns, as low-income recipients tend to spend their grants on VAT-rated basic goods, returning approximately 12% to the government.

• The implementation of a UBIG for adults aged 18 to 59 is projected to significantly reduce poverty and stimulate economic growth, with poverty levels expected to drop by 67% over the next twenty years.
• Compared to a baseline GDP growth of 2.2%, the proposed UBIG pathways are estimated to increase GDP growth to between 2.8% and 3.5% by the year 2030.
• The gross cost of providing a UBIG at the 2022 Food Poverty Line (FPL) of R624 per month is estimated at R255 billion annually, though actual costs are expected to be lower (between R153 billion and R204 billion) because some eligible people may not register.
• The government recovers a portion of the UBIG expenditure through VAT, as low-income earners spend approximately 81% of their grants on VAT-rated items, resulting in a return of about 12% to the state.
• Proposed financing mechanisms to cover the net cost of UBIG include a 1% wealth tax on the richest 1% of the population, which could generate R143 billion annually, and a Social Security Tax (SST) that could cover approximately 25% of the cost.
• Other potential revenue sources identified include a 25% luxury VAT on wealthy individuals (R9 billion/year), a Financial Transactions Tax (FTT) of 0.1% (R41 billion/year), and a Rental Property Tax (RRT) (over R38 billion/year).

APA

Institute for Economic Justice (2023). Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf

Chicago

Institute for Economic Justice. Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego. 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego |date=2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2023hlama, author = {{Institute for Economic Justice}}, title = {{Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego}}, institution = {Institute for Economic Justice}, year = {2023}, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }