Terms of Reference: Investigating the modalities and impact of a wealth tax in South Africa

Report type

  1. Working paper 
  2. Policy brief

Brief background

  • The recent budget impasse and the reversal of the VAT hike have reinvigorated the debate over a wealth tax in South Africa as one of the options to raise revenue and finance public services while redistributing wealth. 
  • Some of the contentious issues include the revenue potential, administrative complexity, and implementation mechanisms of a wealth tax. 
  • There is therefore a need to model, quantify, and/or explore the revenue potential, implementation mechanism, and its implications on the administrative and legal framework.
  • There is also a need to quantify the impact of a wealth tax on growth, inequality, long-term investment, and the redistribution of income 
  • The evidence from this research will inform advocacy for a wealth tax in South Africa as one of the key progressive tax proposals that must be taken up in the medium term.

Purpose of the activity/output

Working paper

Interested contributors must submit abstracts for a working paper, and policy brief zooming in on a wealth tax in South Africa with the aim to; 

  • Produce new research that builds on IEJ’s research and models and/or quantifies a wealth tax in South Africa, across different thresholds and tax rates.
  • Indicate how a wealth tax would be implemented, and discuss the administrative considerations and legal implications that arise, and how they would be resolved. 
  • Indicate the impact on growth, inequality, and redistribution of income as a result of the tax. 
  • Discuss the political economy consideration of the wealth tax.
  • Where modelling is taking place, this should consider implementing the tax within the current policy framework, its interaction with other taxes, and alongside other complementary policy interventions.
  • Interrogating the gendered impacts of the wealth tax.

Policy brief

A policy brief should be written from the content developed in the working paper. The purpose of this brief is to:

  • Provide a high-level summary and overview of the key proposals in the working paper and their feasibility. 
  • Share key policy recommendations from the working paper’s research findings for policymakers and civil society organisations.

Outputs/Activities

  • Outline: Conceptualise an outline of the working paper and policy brief.
  • First draft (working paper): Share and present draft to IEJ team members.
  • Incorporate comments from the IEJ into the working paper.
  • Second draft (working paper): Share and present draft to IEJ team members.
  • Incorporate comments from the IEJ into the working paper.
  • Third draft (working paper): Share draft with copy editor and IEJ. 
  • Incorporate comments from the copy editor on the working paper.
  • Final draft (working paper): Submit.
  • Draft policy brief.
  • Incorporate comments from the IEJ and the copy editor in the policy brief.

Method

  • Desktop research 
  • Quantitative analysis 
  • Modelling 
  • All writing and formatting must align with the IEJ style guide.

Connection with the project

This research will enable the Resourcing for Rights Realisation team to advocate for evidence-based alternatives to raise revenue ahead of the Medium-Term Budget Policy Statement in October 2025 and to build campaigns with partners on the issue.

Translation

None needed

Budget

R170 000 – R200 000 (working paper and policy brief)

Production Schedule

 16 – 18  weeks

Request for Proposal 

  • Prepare an abstract and an outline with the approach of the working paper and the methods to be used.
  • CV and relevant writing samples of the author.
  • A budget and proposed timelines. 

Deadline for proposal:  17 July 2025

Criteria for the evaluation of the proposal

  • Experience and expertise in modelling and undertaking research work related to fiscal policy and taxation.
  • Proficient writing skills.
  • Empowering new voices in the debate.

Please send proposals to  helen.bhuka@iej.org.za

Apply for this position

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