SA will not have a wealth tax for the foreseeable future if the government listens to the Davis tax committee. The committee has concluded that SA is not ready for a new wealth tax at the moment, though it said that the tax system needed to address the “disturbing levels of wealth inequality” in the country. In a report on the feasibility of a wealth tax released on Thursday, the committee says that further research is needed before the government can decide whether to impose a new wealth tax. This should not be used as a “quick fix” for current revenue needs, it says. Wealth taxes — estate duty, donations tax, securities transfer tax and transfer duties — raise a very small proportion of total taxes (1.4% in 2016-17) in a country where the wealthiest 10% of the population owns more than 90% of the wealth. As an initial, interim measure the committee has recommended increasing estate duty collections as the administrative capacity already exists for this. This was recommended in one...
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