Current economic conditions in South Africa may result in the introduction of a \u201csupertax\u201d on wealthy individuals.<\/p>\n
This is according to\u00a0Nazrien Kader,\u00a0head of taxation services at\u00a0Deloitte, who said the coming tax year will be a\u00a0\u201cwatershed year\u201d for tax hikes.<\/p>\n
Kader was quoted by Moneyweb<\/a><\/strong> as saying that the country\u2019s \u201ceconomic growth prospects have deteriorated considerably\u201d, and\u00a0that revenue collection could come under pressure as a result.<\/p>\n \u201cI think the challenge to [the finance minister] is to generate taxes without penalising growth or exacerbating inequality,\u201d said Kader.<\/p>\n Personal income tax, VAT, and corporate income tax are the biggest financial contributors to the state, stated the report.<\/p>\n Kader said a supertax bracket may\u00a0be reintroduced, which will see high-income earners pay\u00a043% to 45% tax.<\/p>\n Currently, those with an annual income of\u00a0above R701,300 pay a rate of 41% on their taxable income.<\/p>\n \u201cA supertax was also levied in the 1980s, but the bracket was adjusted downwards after a recommendation by the Katz commission,\u201d said Moneyweb.<\/p>\n The rate will likely be lowered again within three years, as South Africa\u2019s finances stabilise, said Kader.<\/p>\n Anti e-toll crusader to tackle tax abuse in South Africa<\/a><\/strong><\/p>\n 10 things you should know about new tax laws in South Africa<\/a><\/strong><\/p>\nSupertax in South Africa<\/h3>\n
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