Advisors to President Cyril Ramaphosa are recommending a wealth tax, euphemistically referred to as a solidarity tax, and estate taxes to help shore up government coffers. Bloomberg news agency has seen the proposal to increase the tax burden on higher earners (more details on BizNews, here).
Less than 3m people paid all of South Africa’s personal income tax last year. What’s more, an employment study, by the University of the Free State and HSRC, indicates that of this group a significant number are no longer employed, with one in seven in the suburbs believed to have lost their jobs by the end of April.
Particularly irksome for taxpayers is the widespread wastage of funds, with bloated, corrupt and badly run state entities Denel, the Land Bank, SAA, Acsa, the SABC and Eskom lining up with their begging bowls for more. Among the reasons, no doubt, that at least 25% of people who own properties worth R3.6m and more are selling up to emigrate, according to FNB’s Estate Agents Survey.
PS: Helping you identify ways to build wealth at the BizNews Finance Friday noon webinar are: Craig Gradidge, of award-winning financial advice company Gradidge Mahura Investments, Johannesburg, and global financial markets specialist Fred Razak, of CM Trading. Free register:Â https://attendee.gotowebinar.com/register/6646694434270030861.
