Minister to tackle growing inequality in emergency budget with higher marginal tax rates; corporate scrutiny
22 June 2020
Finance Minister Tito Mboweni could tackle growing income inequality, exacerbated by COVID-19, in next week’s emergency budget while putting pressure on SARS to collect additional revenue from corporates and high net worth individuals.
EY Tax Partner Professor Osman Mollagee said that the one area that he is watching closely is the extent to which the budget might seek to advance the redistributive effect of the South African tax system given how the pandemic has worsened income and wealth inequality.
“The Minister may for example adjust the progressive personal income tax tables so that the higher income earners pay even more tax while granting greater relief at the lower end”.
Mollagee noted on the topic of redistribution, there has been some debate and speculation around the potential for a wealth tax.