411
EFF Demands ‘Apartheid Tax’ on Inherited Wealth as VAT Battle Hits Court
As the Democratic Alliance (DA) fights to block a controversial VAT hike in the Western Cape High Court, the Economic Freedom Fighters (EFF) have intensified the debate by proposing an “apartheid tax” targeting inherited wealth gained during the apartheid era.
The DA is seeking to overturn the 0.5 percentage point increase in value-added tax, which was announced by Finance Minister Enoch Godongwana in his March Budget Speech. The party also wants Section 7(4) of the VAT Act—allowing VAT changes to take effect immediately after being announced—declared unconstitutional.
EFF opposes VAT hike, demands tax justice
The EFF has entered the legal fray as an intervening party, opposing both the VAT increase and Parliament’s adoption of the fiscal framework that supports it.
EFF treasurer general Omphile Maotwe told reporters outside the court that the minister was unfairly burdening the poor instead of exploring more just alternatives.
[WATCH] EFF treasurer general Omphile Maotwe says the government must introduce an “apartheid tax” for people who inherited wealth during that era instead of a VAT increase. She says this will give the government more money. @VaylenKirtley reports. #Newzroom405 pic.twitter.com/x1YG0XeolA
— Newzroom Afrika (@Newzroom405) April 22, 2025
“He says he’s short of R28 billion, but raising VAT will only bring in R13.5 billion,” Maotwe argued. “We’re saying, tax the rich. The problem isn’t a lack of options—the problem is fear.”
Call for an ‘apartheid tax’
Maotwe called on government to consider a new kind of wealth tax that targets those who benefited financially under apartheid.
“There’s apartheid inheritance. Introduce an apartheid tax on everyone who inherited wealth from that time. That would raise more than R28 billion. But instead, they go for the easy target—the poor,” she said.
Also Read: Malema Slams DA and FF Plus as ‘Enemies of Progress,’ Vows Against Coalition Government
High-stakes court battle
The case’s outcome could have a major impact on the national budget rollout. If the court sides with the DA and EFF, the VAT hike planned for 1 May could be halted, forcing government to resubmit budget plans for committee review.
Godongwana, meanwhile, is defending both the VAT change and the constitutionality of the Act. In court papers, he claims the challenge is “moot” and insists the increase “cannot be interdicted at this stage.”
A ruling in the matter is expected soon, with just days remaining before the VAT hike is set to take effect.
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com
Sourced:The Citizen
Picture: Jeffery Abrahams/Gallo Images
