As government scrambles to address a growing budget shortfall, Finance Minister Enoch Godongwana has ruled out the implementation of a wealth tax. Speaking in Parliament ahead of his third attempt to pass Budget 2025, Godongwana said South Africa’s wealthy already contribute through various other tax avenues.
Speaking on VOC Breakfast, Advocacy Coordinator at the Pietermaritzburg Economic Justice and Dignity Group, Sibusiso Mboto, said the argument for a wealth tax was always going to be contentious.
“As much as many of us would have loved for that to go through, we can get the sense that the minister was under pressure, that’s why he was very firm when making the announcement.”
Mboto added that there are still alternative ways to improve tax collection and boost revenue.
“Outside of the wealth tax, there is still room in which the minister and National Treasury can manoeuvre, including ensuring that the SA Revenue Services have more capacity to collect more taxes. This includes stopping more corporates from getting away with a lot of revenue that gets unchecked, which can benefit the South African economy.”
Listen to the full interview below:
VOC News
Photo: Treasury_RSA/X
