Table of Contents
- Civil society coalition calls for action as G20 Finance Track meets in KwaZulu-Natal
South Africa Urged to Lead Global Push for Wealth Tax Reform. A coalition of civil society organizations and tax justice advocates is calling on the South African government to implement bold measures aimed at taxing the ultra-wealthy and curbing corporate tax abuse.
The demand comes as South Africa hosts the G20 Finance Track meetings at the Zimbali Resort in KwaZulu-Natal, a pivotal moment for the country to align its global tax commitments with local economic reforms.
Tax Justice Advocates Rally for Progressive Reforms
The South African Tax Justice Working Group, which includes key stakeholders such as COSATU, Oxfam South Africa, and the Institute for Economic Justice (IEJ), issued a joint declaration urging government to address rising inequality through wealth taxation and stronger anti-avoidance policies.
“As finance ministers gather here, South Africa must seize this opportunity to act decisively against corporate tax abuse and adopt measures that reflect its international tax justice commitments,” the group stated.
Their message comes amid growing global momentum for the taxation of high-net-worth individuals (HNWIs), driven by the widening wealth gap and mounting pressure on public finances in developing economies.
Global Trends Highlight Potential of Wealth Tax
The call is bolstered by findings from a G20-commissioned study led by economist Gabriel Zucman, which estimates that a 2% annual tax on the wealth of the world’s 3,000 billionaires could generate up to $250 billion (approx. R4.5 trillion) in revenue globally each year.
South Africa, Brazil, and Spain have already signaled support for wealth taxation reforms by joining the Sevilla Platform for Action (SPA) earlier this year at the United Nations 4th International Conference on Financing for Development.
According to Oxfam, these countries are now forming a global alliance to showcase political will for progressive tax policies—an alliance that could gain further traction at COP30 in Brazil and the G20 Summit in South Africa.
Kenya Surpasses 2024/25 Revenue Target with Ksh 2.57 Trillion Collection
National Treasury Urged to Embrace Wealth Tax
The Working Group has urged South Africa’s National Treasury to explore a fair and equitable taxation model that targets the super-rich, rather than continuing to rely on regressive instruments like value-added tax (VAT), which disproportionately impact low-income earners.
“South Africa stands to benefit from adopting a wealth tax, given the deep levels of inequality that persist in our society,” the group noted in its declaration.
The statement also encouraged government officials to champion progressive tax reform during its G20 presidency and take full advantage of the global shift toward wealth-based taxation.
Finance Minister Cautions Against Wealth Levy
Despite mounting pressure, Finance Minister Enoch Godongwana has voiced skepticism over introducing a dedicated wealth tax. In a parliamentary session held shortly before presenting the 2025 Budget, he argued that South Africa’s affluent population is already subject to multiple layers of taxation.
Godongwana emphasized that existing revenue from income taxes, capital gains taxes, and property levies already contribute significantly to the national coffers, and that new taxes should be weighed against their potential administrative burden.
However, critics argue that South Africa’s current tax structure does not adequately address wealth concentration or tax avoidance by multinational corporations, areas that remain under-scrutinized.
Tax Reform Seen as Crucial to Fiscal Sustainability
With economic inequality at record levels and revenue needs continuing to grow, tax justice advocates believe a wealth tax could play a pivotal role in enhancing South Africa’s fiscal space and delivering social equity.
As South Africa prepares to host the G20 Summit, the country faces a critical choice: lead the charge on global tax justice, or risk falling behind in the evolving conversation on fair taxation.
