South Africa, the continent’s largest economy with a gross domestic product of about $400 billion, is considering widening its high-wealth tax net in a bid to raise revenue and address ongoing fiscal deficits.
The South African Revenue Service (SARS) confirmed that it is currently reviewing the qualifying criteria for its High Wealth Individual (HWI) unit. At present, the unit oversees taxpayers with gross assets of at least 75 million rand (approximately $4.3 million).
According to SARS, the review could see more wealthy individuals brought under closer tax scrutiny as the government explores sustainable ways to strengthen public finances and reduce budgetary shortfalls.
According to SARS, this threshold may soon be lowered to capture a wider pool of wealthy South Africans.
Natasha Singh, Director of the HWI unit, confirmed the development. “We want to expand our base. There are many ways we can do this: one is to bring on board more taxpayers with 75 million rand in gross assets, another is to lower the criteria and potentially move toward the measures used in Africa or global reports on high-net-worth individuals,” she said.
