SARS refuses to be drawn into tax politics amid renewed calls for wealth tax implementation
A tax on the highly rich has often been touted as an alternative to burdening poorer households in a bid to bridge National Treasury’s budget deficit.
SARS Commissioner Edward Kieswetter. Picture: X/sarstax
JOHANNESBURG - The South African Revenue Service (SARS) has again refused to be drawn into the politics of taxes amid renewed calls for the implementation of a wealth tax.
A tax on the highly rich has often been touted as an alternative to burdening poorer households in a bid to bridge National Treasury’s budget deficit.
SARS again fielded questions about plans for a possible wealth tax on Tuesday, when the tax authority announced its 2024/25 tax revenue outcomes.
Wealth tax is essentially a tax based on the total value of a person’s assets.
It is usually charged every year based on the value of assets like property, cars, and investments.
Wealth tax is often used by politicians as the "Robin Hood" of taxes, which takes money from the rich and gives it to the poor.
But some economists said they were too expensive to manage and did not bring in much revenue.
SARS Commissioner Edward Kieswetter said the tax authority had not taken a position on the matter.
"SARS is required to advise the minister, who is then principally responsible for deciding on tax policy."
He said the country did in fact have stealth wealth taxes such as the luxury car tax, capital gains tax, municipal rates based on the value of property, and estate duty.
During the March budget, National Treasury proposed a one percentage point value-added tax (VAT) increase staggered over two years.
This proposal has become a bone of contention among political parties, stalling the adoption of the 2025 budget.