Stop the Granny-Tax

Many retirees in South Africa, including foreign nationals living here and South Africans returning home after years abroad, rely on pensions as their primary — often sole — source of income. The government’s recent proposals to tax foreign pensions signal a dangerous precedent: that even the retirement savings of elderly people are a pool from which the state can draw more revenue. This threatens not only individual dignity and financial security, but also South Africa’s attractiveness as a retirement destination and as a home for returning diaspora.

Speak up, be heard, take a stand!

We call on Parliament and Treasury to abandon any proposal to tax foreign pensions (and to enshrine protections against future pension raids), demand greater fiscal discipline (austerity where possible) rather than expanding taxes, and to recognize that retirees are not a cash cow to solve budget shortfalls.

More about this campaign

Key Concerns with the Proposed Taxation of Pensions

Economic & demographic damage
- Foreign retirees: Many foreign nationals choose South Africa as their retirement home (for climate, lifestyle, investment potential). Taxing foreign pensions will deter new retirees and even cause current ones to relocate.
- Returning diaspora: South Africans who spent years working abroad often return to retire. They bring foreign pension income, invest in property, consume locally, create jobs, and help lift neighborhoods. Taxing their pensions discourages their return.
- Loss of investment & consumption: Retirees are not passive; they pay for housing, services, healthcare, schooling for grandchildren, etc. Reducing their spending power hurts local markets and government revenues in other tax streams.
Principle of fiscal responsibility & fairness
- Instead of continually expanding the tax base, the government should audit its own spending, reduce waste, and prioritize austerity where necessary.
- The assumption that older citizens’ savings can be taxed to resolve budget deficits is ethically weak: many retirees do not have alternative income streams.
- Taxing pensions selectively (e.g. foreign ones) may amount to unfair targeting of a vulnerable group.
Social & moral dimensions
- Many retirees are caregivers for grandchildren, sponsors of education, or provide family support. Pension income is often non-negotiable.
- Where else will the elderly turn? Raising taxes on working-age citizens or cutting public services only magnifies burdens across society.

What we’re advocating for

Immediate withdrawal of any legislative proposals to tax foreign pensions.
- Protect the current exemption under Section 10(1)(gC)(ii) and guarantee its permanence.
- Enact a legal safeguard (in the Income Tax Act) stating that pensions from foreign employment income cannot be taxed in South Africa.
Expand or codify protections so that domestic retirement funds cannot be arbitrarily taxed.
- Ensure that any future proposals targeting pensions (local or foreign) must pass a higher threshold (supermajority, public consultation, etc.).
- Introduce a constitutional or statutory guarantee that pensions cannot be used as “rainy-day” fiscal reserves.
Promote fiscal responsibility and spending restraint in government.
- Demand audits of large state expenditures (e.g. visits, diplomatic missions, state-owned enterprises, oversized perks).
- Call for trimming of non-essential spending before targeting ordinary citizens’ savings.
- Encourage transparency in budget and expenditure, and stronger oversight over waste, corruption, and bloated bureacracy.
Commit to protecting retirees’ income and dignity as a priority.
- Advocate for pension indexation, inflation protection, and safe-guards against erosion of retirement income.
- Ensure that retirees (especially foreign and diaspora retirees) are included in public dialogues and policy consultations.

How you can help

Sign the petition above to register your opposition.
Share this campaign among your networks—especially retirees, diaspora, international communities—encouraging them to speak out.
Contact your MP or provincial representative asking them to oppose any pension tax measures.

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Stop the Granny-Tax

Speak up, be heard, take a stand!

More about this campaign

What we’re advocating for

How you can help

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