CAPE TOWN - Founder of the Microsoft Corporation and billionaire businessman, Bill Gates said in an interview with CNN’s Fareed Zakaria that rich people like himself should pay “significantly” higher taxes.
The billionaire said that although he has paid more than R117 billion in taxes, government should still command people in his position to pay higher taxes.
The second richest person in the world, according to Bloomberg’s billionaires index reportedly holds a net worth of R1.78 trillion.
Gates's announcement comes after he criticised the Republican tax overhaul that US President Trump had signed.
The new bill reportedly boosts the value of stock portfolios for the wealthy.
Gates said that the new bill will benefit the rich, telling CNN that it was a regressive tax bill.
Meanwhile, analysts are predicting that a hike in value added tax (VAT) in South Africa will be announced in the Budget this week.
The Budget Speech, expected to take place on Wednesday, February 21 may also address the R50 billion deficit that the country is facing.
Allan Gray Bond Fund executive, Sandy McGregor said that increasing VAT is the only viable way for National Treasury to raise more money.
This is because personal tax rates have reached levels where further increases will not significantly boost revenue.
McGregor and audit firm PwC forecast a two-percentage-point increase in VAT, while audit firm Deloitte says the increase will be one percentage point.
Alexander Forbes says the following measures are likely to be announced in the Budget:
• VAT of 14% is likely to be introduced on fuel, which could increase the petrol price by more than a rand per litre;
• VAT may be levied on electronic services, such as cloud computing and online transactions;
• Additional wealth-related taxes (perhaps a luxury tax) may be introduced; and
• There may be a reduction in the medical tax credits to fund National Health Insurance.
- BUSINESS REPORT ONLINE