Speculation on Wealth Tax Could Contribute to Further Emigration of South Africa's Wealthy
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LONDON, April 28, 2021 /PRNewswire/ -- As many countries attempt to recover from the economic fallout of the pandemic, the introduction of a wealth tax has become an increasingly popular solution to tackle this. 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. South Africa has become the latest country rumoured to introduce a wealth tax with a recent study by the World Inequality Lab demonstrating that the tax could generate up to 160 billion rand ($10.7 billion dollars). Similarly, experts at the University of the Witwatersrand in Johannesburg have suggested establishing a progressive wealth tax for those earning above 3.6 million rand which accounts for 354,000 high-earners in the country. While there have been no plans as yet to establish the levy, the nation has advanced on its 'high wealth individual taxpayer' division.