(Image: chatgpt)
According to SA's Finance Minister, Enoch GodongwanaThe government will not impose a wealth tax on South Africa's richest citizens. Apparently, this is because they feel that the current wealth tax measures in the country are adequate.
The comments came in a written parliamentary reply by Economic Freedom Fighters (EFF) MP Karl Niehaus when asked about measures to address inequality, including a wealth tax on the super-rich and the nationalization of key strategic sectors. He also asked what steps the government was taking to address the impact of rising fuel prices and broader cost-of-living pressures on working-class South Africans.
Godongwana said the government has already responded to high fuel prices by providing temporary fuel levy relief on petrol and diesel in 2026, which has offset the loss of approximately R17.2 billion in revenue. He also said that the government is not discussing nationalization of any major economic sectors, and instead supports a mixed economy where both the public and private sectors play a role in promoting growth, investment and job creation.
“At present, the government is not discussing nationalization of key sectors of the economy. South Africa's economic policy seeks to achieve inclusive growth, job creation and better service delivery through a mixed economy in which both the public and private sectors play important roles,” he said.
As far as wealth tax is concerned, he said South Africa already has several instruments to tax wealth, including estate duty, donation tax, securities transfer tax, transfer duty and capital gains tax. “The total annual tax revenue collected from the four national taxes on wealth, excluding local property taxes, was R21.3 billion in 2024/25,” he said.
Godongwana said, “International evidence suggests that many countries abandoned their wealth taxes over the years or significantly reduced their scope because they were ineffective – either in favor of inheritance taxes/estate taxes and others, or altogether. In 1990, twelve countries had a wealth tax, while only four countries (Norway, Switzerland, Spain and Colombia) could be said to have a wealth tax today.
“Reasons for eliminating property taxes include: high costs of collection; administrative complexity; risk of capital flight; limited revenue derived from these taxes; and the negative impact of taxing property on economic growth”.
So, in other words, the super rich can continue to amass their millions while many citizens continue to live below the poverty line. Good.
(Source: IOL)