More evidence that South Africans are trying to get their money out of the country
A wealth tax may be the quickest way to plug holes in government finances and pay for additional costs, including Covid-19 vaccines, but it is not sustainable, says Momentum Consult CEO Hannes van den Berg.
Van den Berg said that a wealth tax is a short-term tool to solve a long-term problem.
“It is a quick way to fill in the gaps left by mismanagement of public funds, but it is not a durable solution,” he said. “South Africa has a relatively well developed tax regime that resembles those of first world countries. The problem is our shrinking base of individual contributors. “
Tax statistics for 2020 show that there are 4,337,923 individual taxpayers in South Africa.