Wealth tax won't raise enough for BIG - but VAT, income tax hike may, says Treasury's Momoniat

A wealth tax won't be able to raise enough revenue to potentially fund a basic income grant in the same way an increase in VAT or personal income tax could, says Treasury's acting director-general Ismail Momoniat. Momoniat was speaking at the Tax Indaba hosted virtually by the South African Institute of Taxation on Wednesday. He weighed in on various tax matters – whether it be raising revenue or dealing with issues like climate change and health. Momoniat also noted that taxes would have to be adjusted to make way for the changing energy landscape, a challenge many countries face. He noted new UK Prime Minister Liz Truss's goals to cap energy bills (amid rising gas prices) while also lowering taxes. "She sounds to me like a great magician if she achieves that. She will probably need a Nobel prize. But I have my doubts," he quipped. Momoniat described the tax as a "blunt tool" which people do not want to see changing much every year. In the last budget, none of the taxes were raised, barring carbon and sin taxes. He added that such punitive taxes would likely keep going up.