Supertax on rich South Africans could be introduced: expert

Current economic conditions in South Africa may result in the introduction of a “supertax” on wealthy individuals.

By - January 29, 2016 Share on LinkedIn
Government wasting money

Current economic conditions in South Africa may result in the introduction of a “supertax” on wealthy individuals.

This is according to Nazrien Kader, head of taxation services at Deloitte, who said the coming tax year will be a “watershed year” for tax hikes.

Kader was quoted by Moneyweb as saying that the country’s “economic growth prospects have deteriorated considerably”, and that revenue collection could come under pressure as a result.

“I think the challenge to [the finance minister] is to generate taxes without penalising growth or exacerbating inequality,” said Kader.

Supertax in South Africa

Personal income tax, VAT, and corporate income tax are the biggest financial contributors to the state, stated the report.

Kader said a supertax bracket may be reintroduced, which will see high-income earners pay 43% to 45% tax.

Currently, those with an annual income of above R701,300 pay a rate of 41% on their taxable income.

“A supertax was also levied in the 1980s, but the bracket was adjusted downwards after a recommendation by the Katz commission,” said Moneyweb.

The rate will likely be lowered again within three years, as South Africa’s finances stabilise, said Kader.

More on tax

WhatsApp does not pay tax in South Africa: MTN

Fighting government tax abuse in South Africa

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you buy mobile data bundles on a monthly basis?

View Results

Loading ... Loading ...

More News

R234,000 for a Twitter remote code execution vulnerability

Twitter on phone

Over the last two years, Twitter has paid out over R5 million to researchers who have reported bugs to the company.

Weak rand and movie price hikes in South Africa

Ster Kinekor logo

Ster-Kinekor has answered questions on how the weak rand will affect its annual price adjustments.

Asus launches Apple MacBook-beating ZenBook 3

Asus ZenBook 3

Asus has revealed its ZenBook 3 laptop, which weighs 900 grams and is 11.9mm thick.

Massive backlash against Windows 10 update

Windows 10 logo

Chinese users of Microsoft’s software have voiced their opposition to the company’s push to get them to upgrade to Windows 10.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
×