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South African High Earners’ Exodus May Limit Room for Tax Hikes

Feb. 21, 2021, 5:00 AM

South Africa’s loss of skilled and high earners could limit room to raise income taxes as the Treasury seeks to plug a budget shortfall that’s above wartime levels.

A fourth-quarter estate agent survey by FirstRand Ltd.’s First National Bank shows a more than fifth of all houses valued at 2.6 million rand ($176,939) or more that were put on the market by the end of last year was because people planned to move abroad.

This could further erode the tax base in a country where fewer than 14 million individuals in a working-age population of 39 million are registered ...