The National Treasury plans to raise an additional R40 billion in tax increases over the next four years with additional measures, such as a proposed wealth tax, set to help with this collection.<\/p>\n
A proposal document presented by Edgar Sishi, acting head of the budget office, to the National Economic Development and Labour Council (Nedlac) last week shows that this R40 billion will be made up of R5 billion in collections in 2021-22.<\/p>\n
Treasury then plans to collect an additional R10 billion in 2022-23 and in 2023-24 each, and R15 billion in 2024-25.<\/p>\n
The proposal document, which has been seen by Bloomberg<\/a><\/strong>, states that additional tax measures will be announced in February 2021, with research and analysis currently being focused on wealth taxes.<\/p>\n In July, Sishi said that Treasury<\/a> <\/strong>was considering research reports from the Davis Tax Committee on the possible introduction of new measures, including the viability of a\u00a0wealth tax\u00a0and how it relates to a land tax and estate duty.<\/p>\n \u201cWe 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,” he said at the time.<\/p>\n Finance minister Tito Mboweni has said that Treasury is discussing the possibility of an\u00a0inheritance tax\u00a0and a so-called\u00a0solidarity tax in a bid to raise additional finances.<\/p>\n Taxes on the wealthy are favoured politically and a solidarity tax, associated with the virus outbreak, would be limited in duration. In South Africa\u2019s top income-tax rate is 45%, corporate tax is 28% and VAT is 15%.<\/p>\n