As part of the red berets’ submission on a new fiscal framework and revenue proposals for 2025, the EFF reiterated its calls for a wealth tax.
Central to this proposal is the urgent introduction of a wealth tax, which would particularly focus on underused and luxury land, such as private game farms, recreational estates, and privately owned reserves.
“These properties hold enormous real estate value but contribute little to no productive activity or developmental benefit to society.
“Most of them reflect the historical privileges of colonial and apartheid land distribution, and taxing them is both economically rational and morally justified,” reads the document.
Unjust distribution of land
The red berets claim that many of these landholdings reflect the unjust distribution of land from colonial and apartheid times and that taxing them is economically rational and morally justified.
The document also argues that while the National Treasury claims that South Africa already has wealth taxes, such as estate duty and transfer duty, these only brought in R21.3-billion in 2024/25, less than 1% of total revenue.
The party believes that a targeted wealth tax on luxury land assets could raise significantly more.
The document explains that by taxing land valued at over R1-trillion at a modest 0.25%, the government could raise R2.5-billion annually.
A higher rate of 0.5% on properties worth over R50-million could increase revenue to R7.5-billion.
The EFF insists that this approach could not affect ordinary households or disrupt economic activity but would broaden the tax base.
Once-off apartheid tax
It also wants an annual levy on inherited wealth above R10-million. Unlike the existing estate duty, which is applied once, this would be an ongoing tax.
The EFF said this would close loopholes that allow wealthy families to avoid estate duties and could generate R10-billion to R20-billion annually.
The party also proposed a once-off apartheid tax on all trusts created before 1994.
According to the document, these trusts were often used by white families and corporations to shield wealth during apartheid and claim that such trusts still hold billions in untaxed wealth to date.
“Three decades into democracy, these instruments continue to lock away billions in untaxed wealth, contributing nothing to redress or transformation,” EFF stated.
The proposed tax would be based on the trust’s net asset value.
Trusts valued between R20-million and R50-million would be taxed at 2%, those between R50-million and R100-million at 4%, while trusts valued above R100-million would be taxed at 6%.
The party estimates that there are at least 15 000 to 20 000 such trusts in South Africa, with average assets exceeding R40-million. It also believes that this move could bring in between R30-billion and R50-billion.
EFF wants SARS’ staff numbers raised
The EFF proposed that these funds be used for land reform, repatriations, and infrastructure in rural areas and townships.
The document also looked into the South African Reserve Service (SARS), calling for an increase in funding, starting with an additional R4-billion in 2025/26 and a further R500-million in 2026/27.
The EFF proposed that the SARS staff number be ramped up to 2 500 and improved systems to chase down the estimated R700-billion to R800-billion national tax gap.
“This investment is not a cost; it is a multiplier. If SARS collects even R30-billion annually from improved enforcement [a modest 5% of the total tax gap], this will represent a return of over 600% on the proposed investment,” reads the document.
