Tax relief for single moms is a necessity

South Africans are faced with a multiplicity of crises daily, many of which the government is responsible for and is unable to meaningfully remedy, whether the causes are internal or external.

The cost of living keeps rising, rolling electricity blackouts continue to keep the economy stagnant, our families and communities are terrorised by crime as illustrated by the recent quarterly crime numbers, and corruption steals from us all and has not been dealt with, which is evident from the fact there hasn’t been a single state capture prosecution.

This is the harsh and difficult lived reality for many of us, but the most vulnerable feel the shocks more, and it is worse for single mothers. For her it is a double load compounded by the scourge of absent fathers.

Not all mothers choose to be single, but almost all single mothers are raising a child in school or university while balancing the demands of working in an unfair and unequal system.  

I have witnessed how hard it is to be a single mother. I was raised by a single mother. I could see how she struggled to keep up with the costs that came with raising me and my two siblings. She did her best to ensure we were educated and did not go to bed hungry. I share my upbringing not because it is a unique story, but because it is the daily lived experience of millions of single mothers and the children they raise.

It is for this reason Rise Mzansi is advancing and advocating for a tax relief regime for single mothers to ease the burden of care placed on them.

In our model single mothers who earn R500,000 per annum or less will benefit from a range of tax incentives on the associated costs related to raising children, whether it is baby formula or schooling. This will be administered by the South African Revenue Service .

The General Household Survey by StatsSA showed 44.1% of households are headed by a single mother. This means 90% of all children who are raised by single parents are raised by a mother.

It is these single mothers who carry the child-rearing responsibilities and burden of care. For many single adults, the burden of care extends beyond children to taking care of their elderly parents, adding another layer of financial and emotional responsibility for many single mothers.

It is single mothers who are not covered by the South African Social Security Agency (Sassa) child grant of R510 per month. The Sassa child grant is means-tested and the applicant must prove their income is not more than R61,200 per annum as a single parent, which equates to R5,100 per month. The average gross income is R25,304 per month, or R303,648 per year, leaving a gap of salaried single parent professionals who qualify to pay personal income tax, but do not qualify for child support or assistance.

Higher earners are taxed at a higher rate, but women’s levels of taxable income are lower, with only 14% of earners in the highest bracket. Moreover, the latest World Economic Global Gender Gap Report shows South African women are paid between 23% and 35% less than men doing the same job.

Women also pay a disproportionate amount of consumption tax, being responsible for buying general household goods such as food, as well as paying for health and education. The National Treasury may increase VAT during the budget speech this Wednesday, putting additional pressure on the overstretched budgets of single mothers without tax relief to curb the ever-rising cost of living.

The list of daily expenses for the professional working mother, such as childcare, car repayments, data and rates and taxes keep growing higher, leaving little room to make cuts in the household budget. About 70% of women run out of money before the end of the month and many turn to taking on more debt to stay afloat. Not for luxuries, but to put food on the table for their children.

Unfortunately, this is particularly true for single mothers with extra responsibilities of providing for their dependents. With no relief to further curb living expenses, single mothers will enter the debt servicing trap, making a tax rebate on their necessary expenses even more important.

On top of the provisions for daily living, health services and education expenses, mothers also seek safe shelter for their family.

The latest crime statistics indicate contact crimes against women and children continue to increase, forcing some mothers to make the decision to add to their debt and bond repayments by moving to properties in safer areas so they can provide a secure home for their dependents.

To finance minister Enoch Godongwana, it is for all these reasons Rise Mzansi is advocating for tax relief for single mothers to ease the financial burden of care. We believe it is a necessity given the escalating cost of living.

Makashule Gana is Rise Mzansi chief organiser

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