‘Do black tax in a different way’

WHILE some young black professionals find it difficult to deal with the concept of black tax, economist Makwe Masilela said investing in one’s immediate family is not a bad thing if done correctly.

For most black professionals, the first job comes with the responsibility of looking after the family and extended family. This could be a result of an economy plagued by the history of apartheid. African families have a history of sticking together and looking after one another.

But Masilela said that could be done differently. He said that investing in relatives did not mean handing out money willy-nilly; the investment should be able to have an effect.

“We don’t have to free ourselves, but we’d rather do it in a better structured way. Meaning it doesn’t have to be at the consumption level only, but also support each other professionally – pooling resources together to uplift each other, meaning making sure that the same money circulates enough among us before getting out, as done by the likes of Indians and Jews,” Masilela said.

He said black professionals could think about investing in the education of their family members or helping them start businesses.

“We can help out in a different way by making sure that whatever they give out has a multiplier effect, for example, education, helping out to raise funds to start a business.”

Masilela said that while investing in family and relatives was good practice, one should be able to differentiate between Ubuntu and being taken advantage of.

“Yes and no (black tax is related to Ubuntu). Yes, in the sense that Ubuntu leads you to know the importance of helping out, but no, in the sense that in other circumstances people are taking advantage of you,” he said.

Masilela said the South African economy could be fair to young black professionals if it was able to yield positive effects for the youth.

“It could be fair only if it can be shaped or structured in such a way that it leads to positive multiplier effects,” he said.

Statistics South Africa announced last week that unemployment fell to 32.7% in the final three months of last year from 32.9% in the preceding quarter.

The apartheid system of city planning is one of the reasons why people in rural areas do not get jobs, because they are far away from job centres, according to Stats SA. The unemployment rate among black Africans was higher than the national average.

The country’s youth unemployment rate stands at more than 40%.