South Africa’s tax base is highly concentrated, with 978,140 individuals paying 60.6% of all personal income tax in the country. This means that around 1.5% of the country’s population is responsible for just over 60% of all personal income tax revenue. The highly concentrated nature of South Africa‘s tax base limits the government’s ability to raise tax revenue by increasing rates, while also ensuring its revenue sources are vulnerable to any kind of shock.
Sam Busa