🇿🇦💸 South Africa’s tax base shock
South Africa’s tax system is facing an alarming imbalance that economists warn is unsustainable:
▪️Just 1,660,182 individuals—a mere 2.6% of the country’s 64 million people—contribute 76.2% of all personal income tax.
▪️The situation is equally concerning in the corporate sector. Only 1,051 companies—representing 0.1% of the total—pay 72.3% of all company income tax.
▪️Over 30% of the population—approximately 19.2 million people—currently rely on social grants, a figure projected to grow to 19.7 million by 2026/27.
▪️This means that roughly 12% of South Africans who pay income tax are supporting a social safety net for nearly half the population.
https://businesstech.co.za/news/finance/804878/south-africas-tax-base-shock/
South Africa’s tax system is facing an alarming imbalance that economists warn is unsustainable:
▪️Just 1,660,182 individuals—a mere 2.6% of the country’s 64 million people—contribute 76.2% of all personal income tax.
▪️The situation is equally concerning in the corporate sector. Only 1,051 companies—representing 0.1% of the total—pay 72.3% of all company income tax.
▪️Over 30% of the population—approximately 19.2 million people—currently rely on social grants, a figure projected to grow to 19.7 million by 2026/27.
▪️This means that roughly 12% of South Africans who pay income tax are supporting a social safety net for nearly half the population.
https://businesstech.co.za/news/finance/804878/south-africas-tax-base-shock/