Chief director Edgar Sishi says the National Treasury is considering a number of new tax measures as government seeks to raise an additional R40 billion through hikes in the coming years.<\/p>\n
Presenting in a virtual parliamentary meeting on Friday (3 July), Sishi said that Treasury was considering research reports from the Davis Tax Committee on the possible introduction of new measures, including the viability of a wealth tax<\/strong> and how it relates to a land tax and estate duty.<\/p>\n “We are looking at these recommendations. It is important to remember that tax amendments over the last five years have included some of these proposals and we are looking at additional proposals for the 2021 budget.”<\/p>\n Citing Finance minister Tito Mboweni’s supplementary budget speech at the end of June, Sishi said that there will be tax increases of R40 billion over the next four years to help stabilise debt in the country.<\/p>\n The specifics of these increases will be communicated in the February 2021 budget, he said.<\/p>\n While no major tax increases were directly announced by Mboweni, Treasury\u2019s supplementary\u00a0budget<\/a>\u00a0<\/strong>shows that the country plans to introduce a number of tax increases to address a growing shortfall.<\/p>\n \u201cGiven the extent of fiscal consolidation now required, however, both expenditure reductions and tax increases are necessary to stabilise debt,” Treasury said.<\/p>\n \u201cThe active scenario assumes tax increases of R5 billion in 2021\/22, R10 billion in 2022\/23, R10 billion in 2023\/24 and R15 billion in 2024\/25.”<\/p>\n