South Africa to weigh a wealth tax to aid recovery, Rapport says

Proposal comes from a group of economists National Treasury budget chief Michael Sachs.
Commercial office buildings, including the Transnet headquarters office, left, stand on the skyline in the CBD of Johannesburg. Image: Bloomberg

The South African government will consider a proposal for a one-off wealth tax during an economic recovery planning meeting on Monday, according to a report in Rapport.

Such a tax could assist Africa’s most industrialised economy as it bounces back from the coronavirus outbreak and a five-week lockdown that is scheduled to be lifted on April 30. The proposal comes from a group of economists, led by former South African National Treasury budget chief Michael Sachs, the local newspaper reported, citing a plan that was presented to the cabinet last week.

A number of South Africa’s richest citizens, such as Johann Rupert, Patrice Motsepe and Nicky Oppenheimer have already committed large sums to help the country’s government during the crisis. Many executives across the country have also donated one-third of their salaries to the cause.

South Africa plans to slowly reopen parts of the economy, restarting about 50% of its mining production in coming days. It has had more than 3 000 coronavirus infections, with 52 deaths, since its first reported case on March 5.

© 2020 Bloomberg

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Yaa. Lets chase them all away.

This is typical from a socialist / communist / unionist / BEE kind of government.This depression is going to land us all in the gutter with this lot.

Its like they want to play the last card first. These poor ANC people are clutching at straws and making a bad situation worse.

If they needed money WTF did they close alcohol and cigarette sales? The gangs have actually called a truce as they can not afford a fight while all this money is out there to be made. They are laughing at these @#$%^&*.

What was Al Capone’s claim to fame during the 1930’s depression? We don’t learn.

This is all they are good at. Getting a slice of someone else’s pie. To sort their own out. IMPOSSIBLE.

Be careful of this lot. This thing has not even started yet.

With the previous regime, max personal tax was about 36 to 38% WHILE THEY WERE ENGAGED IN A WAR WITH THE ANC. To the winner the spoils, the current regime cannot even manage the county with a 45% tax bracket and there is NO WAR, only endless greed and entitlement. Tax is legalised theft, finish and klaar. I understand now why there were rebellions in the past history of the world.

Please tell them to F off. And then to continue to F off until they get to a board saying : no more effing off beyond this point !!!!

Government is facing a sharp reduction in tax revenue over the coming months. Good luck with a wealth tax!

If they want to do something worthwhile get Municipalities to drop rates and taxes instead of raising them.

Municipalities must cut spending by 50% in anycase.

Why always find an easy way? HU? The beggars way?? HU?

The writing is on the wall.

Externalise as much of your savings as you possibly can.

As far away from SARS and the South African government as possible.

And of course we all know that a “temporary” tax and a “once-off” tax is exactly that…End sarcasm…

How stupid do they think the productive segment of SA is?

I am afraid the wealth tax will not be limited to the likes of Rupert, Oppenheimers etc, middle class can also expect to take a hit and once it has been done once it will become a recurring event.

reality is any prospect of government reigning in spending has now evaporated. The downgrade probably just removed another obstacle, thinking is probably now that we have already been downgraded what is the need to pull back spending

Actually the really wealthy won’t pay: their money is in off shore trusts and they live off distributions at the discretion of so called trustees.

ONLY the moderately well off will pay!

NO TAX IS EVER ONCE-OFF!

NEVER EVER!

I’m all for it!

Use the R 450 billion the cadres stole from Eskom.

I find it quite ironic that the very people been asked to, and quickly responding by digging into their own pockets to help, were,just a few months ago been vilified by many as proponents of WMC.
My, my, how things change.

End of comments.

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