What Is Black Tax in South Africa?
What is black tax in South Africa?
Black tax is a term instigated by South Africa’s citizens for financial support in that a black professional or entrepreneur of colour is compelled to provide to their family on a regular basis outside of their own living expenses.
How did black tax came to being?
In 1994, most white people entered into the new democracy of South Africa with generational wealth. This gave them a financial advantage over black South Africans, who transitioned into the new period with little more than a pair of shoes on their feet. As those people founded businesses and rose through the corporate ranks, they felt indebted to use their newfound wealth to help solve the problems suffered by their parents’ generation. Therefore black tax was born.
Is black tax an investment or a burden?
Black tax can be seen in light its socio-economic impact as an investment more than a burden.
What is the benefits of black tax?
1) It provides a financial ladder for families to stay out of poverty.
2) It enhance community development.
3) It help builds generational wealth.
It helps to reduce crime rates that occurs in societies.
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What are the effects of Black tax on the young working generation in the African societies?
1) It increases personal commitment of black professionals to their job responsibilities.
2) It compels black professionals to create jobs as a second stream of income.
3) It reduces the savings capacity of black professionals
How much does the average black South African earn?
The average earnings of employed black South Africans was R6 899 (real earnings) per month
What is the average income of a black family in South Africa?
The average annual household income of blacks is R60,613 according to South Africa’s 2011 census.
