Call to review taxation policy to help fund tertiary education

Published Feb 25, 2016

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The student mobilisations of the past several months have brought into stark relief the contradiction between government’s stated commitment to free education for all as promised in the Freedom Charter and its claim to be presiding over a “developmental state”, and the experience of higher education for the majority at universities.

While massive protests were sparked by an announcement that fees for tertiary education at some institutions would be increased by over 10 percent, the practice over many years of “financial exclusions” of indebted students has repeatedly sparked eruptions on campuses at the commencement of the academic year.

This has been true especially at historically disadvantaged institutions, which admit a higher percentage of students from poor families than their more advantaged counterparts.

Moreover, there are studies that reveal that many university loan recipients are going hungry rather than risk financial exclusion.

Many university academics have long insisted that the current policy for funding higher education is inimical to their efforts to address South Africa’s legacy of unequal educational opportunity.

The current challenge to the status quo is therefore an opportune moment for academics to not only express solidarity with the current movement for guaranteed access to higher education for poor students (and improved conditions of service for low-paid campus workers), but also to place the responsibility for rectifying this situation squarely at the door of government.

Our government’s expenditure on higher education compares unfavourably to most countries around the world.

While individual universities can mitigate the impact of chronic underfunding by ceasing to transfer the major responsibility for such underfunding to students, a radical change in government policy – and not only in tertiary education – is required.

In several southern countries, including Brazil, Ethiopia and India, fees for higher education are nominal or do not exist at all.

Indeed, a 2012 Ministerial Working Group Report detailed the argument for a “no fees for the poor” option and suggested how financing can be arranged differently.

Presently, apart from the wastage of talent from “financial exclusions”, students who have received loans under the NSFAS are expected to commence repayment of these when earning salaries above a derisory monthly amount of R2 500.

Contrary to the insistence by government and the private sector that free higher education for the majority of students is unaffordable, it is imperative that government find the funds needed.

For example, taxation policies could be reviewed with this objective in mind. It has been demonstrated by economists that over at least the past 10 years taxation of the highest earners, and of corporations, has been reduced.

It is argued that simply by bringing taxation of higher-income South Africans (those earning over R700 000 per year) into line with several other countries – including Norway, Japan and the UK – and closing tax loopholes, it is likely that more than enough funding could be generated to provide free higher education to the great majority of students.

This is but one of many options open to the state to raise the requisite revenue. Funding can be found but is dependent on the political, social and economic choices informing public expenditure by the state.

We, the undersigned academics and staff, in solidarity with the student demands, call on our government to abolish payment for tertiary education for at least the majority of poor students and to meet the shortfall in university funding by radically reviewing taxation policy and budgetary allocations, with particular focus on corporate tax and tax avoidance, and on the top bracket of income earners.

Such a move may alienate a tiny minority but would be a much-needed and cost-effective intervention towards a more equitable and sustainable South Africa.

Wits

Joel Quirk

Hylton White

Sonwabile Mnwana

Kelly Gillespie

Jonathan Stadler

Shireen Hassim

Gavin Capps

Moshibudi Motimele

Jacklyn Cock

UJ

Brenden Gary

E Prinsloo

Pier Paolo Frassinelli

Linda Chisholm

Leila Kajee OR

Amira Osman

UWC

David Sanders

Ben Cousins

Gavin Reagon

Nikki Schaay

Moenieba Isaacs

Shirley Brooks

Desiree Lewis

Salim Vally

Ursula Arends

Alex Dubb

Rebecca Pointer

Mnqobi Ngubane

Peter van Heusden

Roy Maartens

Helene Schneider

Lucy Graham

Diane Cooper

Gillian Kerchhoff

Shirley Walters

Fairuz Mullagee

Heidi Grunebaum

Uta Lehmann-Grube

Uma Dhupelia-Mesthrie

Suren Pillay

Lucia Knight

Gillian Kerchhoff

Jane Versfeld

Uma Dhupelia-Mesthrie

Suren Pillay

Paolo Israel

Lucia Knight

Mary Hames

Arona Dison

Karen Wallace

Margie Probyn

Abdullah Bayat

Michael Wessels

Emmanuel Sulle

Kira Schmidt

Zodwa Linda

Bradley Rink

Kaashiefa Mobarak

Anthea Josias

Charlyn Dyers

Donavon Hiss

Alan Ralphs

Mary Hames

Debra Jackson

Arona Dison

Vivienne Bozalek

Romeel Dave

Thandi Puoane

Desiree Abrahams-Marra

Delia Marshall

Amiena Peck

Megan Adams

Philip Hirschsohn

Kenneth Goodman

Diana Gibson

Raymond Koen

Nicky Rousseau

Wendy Wicks

Chesne Albertus

Keith Gottschalk

Karen Collett

UCT

Rachel Wynberg

Sophie Oldfield

Nicoli Nattrass

Sara Matchett

Amrita Pande

Horman Chitonge

Jeremy Seekings

Owen Crankshaw

Monique Atouguia

Andrew Argent

Leslie London

Abigail Parenzee

Michelle Pressend

Graeme Meintjes

Kate Rees

Di McIntyre

Karen Barnes

Theresa Lorenzo

Pat Mayers

Susan Levine

Judy Favish

Reno Morar

Marsha Orgill

Chris Colvin

Theresa Lorenzo

Susan Levine

Pat Mayers

Landon Myer

Linda Cooper

Lungisile Ntsebeza

Linda Ganca

Derek Hellenberg

Nadia Hartman

Kirsty Donald

Steve Reid

Helen Buchanan

Robert Morrell

Pamela Schwikkard

Jonathan Grossman

Marion Heap

Melanie Alperstein

Steve Reid

Kirsty Donald

Kristen Daskilewicz

Tasleem Ras

Helen Buchanan

Robert Morrell

Jonathan Grossman

Virginia Zwigenthal

Tolullah Oni

Lucy Gilson

Liesl Peters

Helen MacDonald

Shajila Singh

Sheila Clow

Seyi Amosun

UKZN

Stephen Knight

Nkosana Jafta

Frances Lund

Marc Blockman

Dr Betty Govinden

Nomfundo Kakaza

Margaret Daymond

Johan Jacobs

Jane Quin

Rhodes

Michael Joseph

Esther Ramani

Mala Singh

Tshwane University of Technology, Stellenbosch

Rasigan Maharajh

University of Fort Hare

Enver Motala

Brian Ramadiro

NMMU

Lulonke Ndobe

Aletta Delport

Shervani Pillay

Lulonke Ndobe

Sylvan Blignaut

Irna Senekal

Nadeema Jogee

Aletta Delport

Frank Matose

Aragorn Eloff

Mats Benner

Seshi Chonco

Rabelani Neluvhola

Liz Sparg

Yelena Smirnova

Brenden Gray

Roxy de Villiers

Deidre Geduld

Ivor Baatjes

Robin Notshulwana

Maarten de Wit

Catherine Kell

Carmel Mahomed

Jung Ran Forte

Lucky Maluleke

Mohammed Ishaaq

Max Santos

Nomakhosazana Hazel

Goedele Louwagie

Carl Magnus

Manuel Gonzalo

James Irlam

Jenny Josefsson

Babitseng Thekiso

Sue Fawcus

Alexandre Vera-Cruz

Cavin Witbooi

Shana Graham

Cherise Henn

Smarajit Triambak

Monde Mbekwa

Umesh Bawa

Chivaugn Gordon

Eric Mwambene

M Minnaar-McDonald

Meshay Moses

Namhla Matshanda

Sue Mcwatts

Shaheen Khan

Nthabiseng Dlamini

Allan Dahl Andersen

Andisiwe Nakani

Ilana Cilliers

Verna Oliphant

Pilar Pringiers

Mabitja Moeta

Nathaniel Joselson

Cathy Mathews

Myrna van Pinxteren

Liz Gwyther

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