South Africa is preparing to expand its monitoring of wealthy individuals to boost government revenue. At present, the South African Revenue Service tracks people with assets above 75 million rand, but under the new plan the threshold will be lowered so that more millionaires fall under this system. The aim is to improve tax compliance and raise funds without increasing VAT or income tax for ordinary citizens.
Currently, only about 4,000 people are officially tracked as high-wealth individuals. Yet reports show that the country has more than 37,000 people with investable wealth of at least $1 million and more than 5,000 worth over $10 million. By broadening the program, officials believe they can capture more revenue and ensure the wealthy pay their fair share.
The government also wants to make the system more efficient by assigning dedicated relationship managers to these taxpayers. Treasury officials have already lowered the reporting threshold to 50 million rand for declaring securities and liabilities, giving the state a clearer view of individual wealth.
At the same time, lawmakers are cautious about introducing a direct wealth tax. Experts warn such a move could drive money out of the country and cost the state tens of billions of rand each year. Instead, expanding the existing monitoring unit is seen as a safer way to strengthen revenue while avoiding economic disruption.
