Will proposed wealth tax can help or hinder SA?

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Financial Wellness Consultant at TNC Wealth Partners, Samke Mhlongo, tells John Perlman more about the wealth tax that’s been proposed.

The proposed wealth tax was brought up again this past weekend at the ANC’s national policy conference.

The ANC wishes to use the proposed wealth tax to fund the basic income grant.

…it’s been proven that over the years, increasing the tax rates hasn’t actually resulted in increased tax revenue.

Samke Mhlongo – Financial Wellness Consultant at TNC Wealth Partners

Economists feel that adding a new tax will encourage South Africans to find new ways of avoiding tax or move their money out the country.

A report by the Bureau of Econom_ic _Research actually found that the wealth tax could lead to a reduction of the tax base over time, especially because we are seeing an increase in people wanting to leave South Africa.

Samke Mhlongo – Financial Wellness Consultant at TNC Wealth Partners

Economist also feel that it will be very difficult to track down and measure the wealth of people who would be considered to pay the wealth tax.

Listen to the full interview below.

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