Davis committee to mull wealth tax
The Davis tax committee has begun its investigations into a possible wealth tax. It has asked for submissions — by end-May — on the possibility of a land tax, a national tax on the value of property (over and above municipal rates) and an annual wealth tax. Oral submissions will be heard during a workshop planned for June. The need for additional sources of tax revenue is due to become even more urgent if the recent credit ratings downgrade of SA to junk status has a significant effect on the government’s borrowing costs and on the rate of economic growth. The committee’s inquiry is based on a request by former finance minister Pravin Gordhan for it to investigate whether it would be appropriate for the government to introduce additional forms of wealth taxation and the feasibility of doing so.