Further evidence that South Africans are trying to get their money out the country
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A wealth tax may be the fastest way to plug the holes in the government’s finances and pay for additional costs including Covid-19 vaccines, but it is not sustainable, says chief executive of Momentum Consult, Hannes van den Berg.
Van den Berg said that a wealth tax is a short-term tool to fix a long-term problem.
“It’s a fast way to fill the holes that have been left by the mismanagement of public funds, but it’s not a lasting solution,” he said. “South Africa has a relatively well-developed tax regime which resembles those in first world countries. The problem is our dwindling individual taxpayer base.”