JOHANNESBURG, April 25 A committee set up to
review South Africa's tax system on Tuesday launched a public
debate on one of the most controversial possible moves on its
agenda - a wealth tax.
The Davis Tax Committee (DTC) announced it was inviting
submissions from South Africans on whether the government should
implement such a tax to lessen the glaring inequality in
Africa's most industrialised economy.
"The DTC was specifically requested by the minister of
finance to inquire as to whether it would be appropriate to
introduce additional forms of wealth taxation and the
feasibility of doing so," the team said in a statement.
"The distribution of wealth in South Africa is highly
Appointed by former Finance Minister Pravin Gordhan in 2013
and headed by judge Dennis Davis, the Davis Tax Committee is
tasked with assessing the role of the tax system in promoting
growth, jobs, development and fiscal sustainability.
It said it was inviting submissions by the end of May on the
desirability and feasibility of wealth taxes on land and
property over and above those charged currently by municipal
authorities, or a national wealth tax.
The committee plans to meet next month to discuss
President Jacob Zuma has called for a radical transformation
of the economy following losses in local elections last year
partly caused by anger over deep inequality that persists more
than two decades after apartheid.
South Africa is grappling with weak economic growth and
unemployment of more than 25 percent. The white minority still
controls a disproportionately big share of the economy.
(Reporting by TJ Strydom; Editing by James Macharia and Andrew