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Smart taxation: Raising revenue and reducing inequality in South Africa

SA-TIED policy dialogue

Smart Taxation: Raising Revenue and Reducing Inequality in South Africa

Fri, 30 August 2024

Join us for a policy dialogue where leading experts will explore South Africa's Personal Income Tax (PIT) system. This discussion will focus on the impact of recent PIT reforms on taxpayer behaviour, revenue collection, and inequality. Panelists will draw on their expertise and SA-TIED research to investigate policy options that could enhance the redistributive impact of the PIT system, stimulate economic growth, and optimize the overall tax mix.

Key discussion points include
  • The influence of PIT policies on taxpayer behaviour, including labour supply, work effort, and emigration.
  • The impact of past PIT policies on inequality and revenue collection.
  • Evaluating policy options that enhance the redistributive effects of PIT, increase revenue, and stimulate economic growth.
  • Assessing the suitability of South Africa’s current tax mix in meeting the country’s economic needs.
  • Strategies for improving PIT enforcement and compliance, particularly in light of recent technological advancements.

This event is a hybrid gathering that offers both in-person and online attendance options. Participants who choose to join remotely will receive login details to access the virtual platform. For guests attending in person, a light breakfast will be provided before the event, and refreshments will be available afterward.

About Personal Income Tax in South Africa

Personal Income Tax (PIT) is a key instrument within South Africa's fiscal policy framework, contributing significantly to national revenue and addressing income inequality. Recent reforms, such as the introduction of a new top income tax bracket and changes to pension deductions, have sparked debate on the efficiency and equity of the current PIT system. This policy dialogue will provide a platform for discussing these reforms and exploring future policy options to better align PIT with South Africa's economic goals.

The panel for this event will feature a diverse group of experts, including:

Christopher Axelson, Acting Head, Tax and Financial Sector Policy, National Treasury

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Chris Axelson started his career as an economic researcher at Genesis Analytics and then worked in various positions at HM Revenue and Customs in the UK. He joined the National Treasury in 2012 as the Personal Income Taxes and Savings director and was later promoted to Economic Tax Analysis chief director where he was responsible for providing policy advice to the Minister of Finance on the tax proposals contained in the Budget Review, and for compilation of the tax and revenue sections of the publications. He is currently the Acting Head: Tax and Financial Sector Policy at the National Treasury. He has a MComm in Economic Science, a Bachelor of Economic Science Honours (Cum Laude), and a Bachelor of Economic Science, majoring in Economic Science and Mathematical Statistics, all from Wits. He is also a CFA charter holder.

Ekow Eghan, Africa Tax Lead, Ernst and Young

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Ekow Eghan is based in Johannesburg and leads Ernst & Young's Africa Tax practice. He specialises in international tax planning and associated tax controversies. He is a Chartered Accountant and holds an MSc in Taxation from Oxford University.

Gemma Wright, Co-Executive Director, Southern African Social Policy Research Insights

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Gemma Wright is co-Executive Director of Southern African Social Policy Research Insights (SASPRI), a UK not-for-profit; Professor Extraordinarius at the College of Graduate Studies at the University of South Africa; and a Non-resident Senior Research Fellow at the United Nations University World Institute for Development Economics Research in Finland. Her research interests include poverty and inequality, social security policy and tax-benefit microsimulation.

Ingrid Woolard, Dean of the Faculty of Economic and Management Sciences and Professor of Economics, Stellenbosch University

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Ingrid Woolard is Dean of the Faculty of Economic and Management Sciences and Professor of Economics at Stellenbosch University. She is also Honorary Professor of Economics at the Universities of Cape Town and Groningen; a Research Fellow of the Institute of Labor Economics (IZA) in Bonn, a senior non-resident research fellow at UNU-WIDER and a Research Associate at the Commitment to Equity Institute at Tulane University.  In 2022 Woolard was inducted into the Academy of Science of South Africa. Her areas of research specialization include the measurement of poverty and inequality, unemployment, social protection and fiscal policy. From 2008 to 2014, Woolard served on the Employment Conditions Commission (ECC) which advises the South African Minister of Labour on making sectoral determinations concerning working conditions and minimum wages in sectors where collective bargaining is weak. From 2013-2018 she served on the Davis Tax Committee which advised the South African Minister of Finance on tax reform for more inclusive growth. In 2018 the Minister of Finance appointed her to chair a Committee tasked with making the VAT system more equitable. 

Nqobani Johnstone Makhubu, Deputy Commissioner: Taxpayer Engagement and Operations, South African Revenue Service

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 Nqobani Johnstone Makhubu is the Deputy Commissioner for Taxpayer Engagement and Operations at the South African Revenue Service (SARS). He oversees tax and customs operations, enforcement, and specialized functions, and serves on the Executive Committee (ExCo) and the Audit and Risk Committee. Prior to this, he held key roles at SARS, including Chief Revenue Officer, Chief Officer: Finance, and Chief Procurement Officer. Before joining SARS, he held leadership positions at Eskom, Anglo American, Unilever, and Tiger Brands, focusing on engineering, supply chain management, and commercial functions. He holds a PhD from the University of Pretoria, a Master of Business Leadership and BCom (Hons) from the University of South Africa, and a BSc in Electrical Engineering from the University of KwaZulu-Natal. He has also completed executive development programs, including one at Henley Business School.

Yanga Mputa, Tax Ombud, Office of the Tax Ombud

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Yanga Mputa became South Africa’s first female Tax Ombud on 1 July 2023, bringing over 20 years of tax experience. She began her career in 1999 at SARS and later held key roles at Arthur Andersen and the National Treasury. At Treasury, she advanced to Director: International Tax, shaping international tax policies and treaties. She then returned to SARS as an International Tax Specialist and played a pivotal role in global tax transparency efforts. Since 2017, Ms. Mputa has represented South Africa on the OECD/G20 Steering Group on BEPS. In November 2023, she joined the Board of the ATAF Women in Tax Network (AWITN).

MODERATOR

Dr Mphagahlele Ndlovu,  Chair, Department of Taxation, University of South Africa 

Mphagahlele Ndlovu

Dr Mphagahlele Ndlovu, is a Chartered Accountant with a strong intellectual curiosity, boasts a proven track record in Taxation and Accountancy. Mphagahlele is the Chair of Department of Taxation at University of South Africa. Her responsibilities include providing leadership in the department of taxation, as well as conducting ongoing research to enrich educational content. She is driven by a passion for education, financial excellence, and governance integrity. Mphagahlele endeavours to make a meaningful impact in both academic, government, and corporate spheres. As a strategic thinker, meticulous executor, and inspirational leader, Mphagahlele endeavours to foster growth, innovation, and accountability in any organisation.
 

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