Eustace Davie, council member of the Free Market Foundation, believes that if a wealth tax was instated in South Africa, it would only serve to drive skilled workers and high net worth individuals out of the country. Ernie Lai King, director and head of tax at the multinational legal practice Norton Rose in South Africa, agrees with Davie, adding that skilled workers were scarce in South Africa, and extra tax burdens would encourage them to move to a different country.
According to data made available by the South African Revenue Service, there are approximately only 2000 taxpayers in South Africa who are considered to be high net worth individuals. Currently the top personal tax rate in South Africa stands at 40 percent, which is considered to be unusually high for an emerging economy.
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