South Africa to Weigh a Wealth Tax to Aid Recovery, Rapport Says

The South African government will consider a proposal for a one-off wealth tax during an economic recovery planning meeting on Monday, according to a report in Rapport.

Such a tax could assist Africa’s most industrialized economy as it bounces back from the coronavirus outbreak and a five-week lockdown that is scheduled to be lifted on April 30. The proposal comes from a group of economists, led by former South African National Treasury budget chief Michael Sachs, the local newspaper reported, citing a plan that was presented to the cabinet last week.

A number of South Africa’s richest citizens, such as Johann Rupert, Patrice Motsepe and Nicky Oppenheimer have already committed large sums to help the country’s government during the crisis. Many executives across the country have also donated one-third of their salaries to the cause.

South Africa plans to slowly reopen parts of the economy, restarting about 50% of its mining production in coming days. It has had more than 3,000 coronavirus infections, with 52 deaths, since its first reported case on March 5.

Article by Bloomberg