Davis committee to mull wealth tax
|The Davis tax committee has begun its investigations into a possible wealth tax.
It has asked for submissions — by end-May — on the possibility of a land tax, a national tax on the value of property (over and above municipal rates) and an annual wealth tax. Oral submissions will be heard during a workshop planned for June.
The need for additional sources of tax revenue is due to become even more urgent if the recent credit ratings downgrade of SA to junk status has a significant effect on the government’s borrowing costs and on the rate of economic growth.
The committee noted that SA had three forms of wealth taxes — estate duty, transfer duty and donations tax — which bring in about 1% of tax revenue.
Capital gains tax is considered by some to be a form of wealth tax but the committee said it was a form of income tax. It considered capital gains tax in its reports on estate duty and did not plan to consider it further in its inquiry into the possibility of a wealth tax.
Gordhan established the Davis tax committee in 2013 to investigate the role of the tax system in the promotion of inclusive economic growth, employment creation, development and fiscal sustainability.
|In doing its work, the committee takes into account recent domestic and international developments and the long-term objectives of the National Development Plan (NDP).
The committee is required to take into account broad tax policy objectives such as revenue-raising to fund government expenditure; social objectives like building a cohesive and inclusive society, which can be met partially through a progressive tax system; and the redistribution of resources
*Source: Business Day by Linda Ensor.
This months Featured Customer of the month is…
Aura Skin Care (Pty) Ltd
This week’s featured client is dedicated to all the hard working moms out there that need a little ‘R&R’ this Mother’s Day.
Aura Skincare Clinic & Nail Bar is nestled in the heart of Parkhurst. They offer a fantastic range of treatments; microblading, eyelashes, nail treatments and the best facials in town to keep you young and make sure you are stress free and well pampered with brilliant skin care advice.
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They aim to make your experience as blissful as possible and to always be mindful that they are making you beautiful.
Treatments include facials, facial enhancements, epilfree hair remover, massages, manicures, pedicures, waxing, threading, eyelash extensions, sugaring and spray tans.
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We at Pfumo apply the ‘International Financial Reporting Standard’, (IFRS), for SMEs.
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