South Africa moots wealth tax in Budget discussions – Reports
South African cabinet considered a proposal to introduce a wealth tax when it discussed amendments to last week’s postponed budget, Business Day reported, citing officials it didn’t identify.
The cabinet met on Monday to consider changes to the budget after Finance Minister Enoch Godongwana had to delay his annual announcement because of a disagreement over a proposed increase in value-added tax. Raising the rate of VAT would have helped to generate R191-billion of revenue through 2028.
The National Treasury signalled last year that it’s weighing whether to introduce a levy on wealth. It’s working with the South African Revenue Service to determine levels of wealth that are declared to the tax authority, Business Day said.
The Democratic Alliance, the second-largest party in South Africa’s coalition government, will outline its proposals for the revised budget on Tuesday. Godongwana will present the government’s new spending plan to lawmakers on March 12.
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