SA shedding skills and wealth
SA’s overall tax base is growing, and fared better during the pandemic than many feared. But the number of high-end taxpayers has stagnated over time, raising questions over SA’s long-run fiscal sustainability
Buoyant tax base estimates for the coming fiscal year made by the National Treasury in the 2022 budget suggest SA’s overall tax base has recovered strongly from the pandemic — though it’s not yet entirely back to 2019 levels.
On the other hand, the number of high-income earners has dropped over the past seven years, bearing out reports of a relentless exodus of skills and talent. This has worrying implications for the robustness of future consumer spending and tax collection, for growth and fiscal sustainability...