As many countries attempt to recover from the economic fallout of the Covid-19 pandemic, the introduction of a wealth tax has become an increasingly popular solution to tackle this.<\/p>\n
While some experts have concluded that a wealth tax could be a short-term tool to raise revenue, many others have also highlighted the concerns attached to the taxation, including a push for the wealthy to leave.<\/p>\n
South Africa<\/span>\u00a0has become the latest country rumoured to introduce a wealth tax with\u00a0a recent study<\/a><\/strong> by the World Inequality Lab demonstrating that the tax could generate up to R160 billion <\/span>($10.7 billion dollars<\/span>).<\/p>\n Similarly,\u00a0experts<\/a><\/strong>\u00a0at the University of the Witwatersrand in\u00a0Johannesburg<\/span> have suggested establishing a progressive wealth tax for those earning above R3.6 million <\/span>which accounts for 354,000 high-earners in the country.<\/p>\n While there have been no plans as yet to establish the levy, the nation has advanced on its ‘high wealth individual taxpayer’ division.<\/p>\n Announced during February’s Budget Speech, the segment is aimed at cracking down on individuals who have not declared all their income due to ‘complex financial agreements’.<\/p>\n The South African Revenue Service (SARS) has already begun to identify wealthy citizens who fall under this bracket, with many expected to receive their first letter soon.<\/p>\n