Budget 2017
WEALTH TAX: That’s rich! Well-off must pay even more
Don’t feel too sorry for top earners hit by the increase in top tax rates. The new level is well below what some people argue is fair. In any case, the rich will find ways to minimise their real contribution to the fiscus
Finance minister Pravin Gordhan is giving 103,000 lucky, and fabulously rich, South Africans a greater opportunity to promote the sort of meaningful transformation that will "allow us all to say we all own our economy". Those 103,000, who were probably well represented in the well-heeled audience (including MPs) that sits in on the minister’s budget speech each year, earn an annual taxable income of over R1.5m. Their tax rate has been upped to 45% and is expected to contribute an additional R4.4bn to the fiscus in 2017/2018. This means the total contribution from our super-rich will be R126.9bn, which is slightly more than 10% of government’s total revenue for the year. Not bad for just 1.4% of the 7.4m South Africans who pay tax. Add in a higher dividends tax hit (up to 20% from 15%) and those among the super rich who smoke, drink and drive a lot might be feeling hard done by. But don’t feel too sorry for them. The same 103,000 are part of the 10% of the population that owns 95% of...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.