The IMF suggests in the 2023 Article IV for South Africa that maintaining the Social Relief Distress (SRD) grant would require either:
- A 6% improvement public sector productivity (requiring real wages to fall to match government labour productivity) and improved financial management of state owned enterprises
- A VAT increase of 4.5 percentage points
- A 2 percentage points increase in the company tax rate
- A 2.6 percentage point increase in marginal personal income tax rates for each income bracket.
