The Davis Tax Committee (DTC) has issued a media statement calling for submissions by 31 May 2017 on the potential imposition of a wealth tax. The Minister of Finance established the DTC in 2013 to inquire into the role of the tax system in the promotion of inclusive economic growth, employment creation, development and fiscal sustainability.
The DTC indicates in its media statement that the distribution of wealth in South Africa is unequal and that currently, South Africa has three forms of wealth taxation, namely estate duty, transfer duty and donations tax, which together bring in about 1% of tax revenue. Submissions are required to on the desirability and feasibility of the following possible forms of wealth tax:
- A land tax
- A national tax on the value of property (over and above municipal rates)
- An annual wealth tax.