Why South Africa is not introducing a wealth tax on the rich

Minister of Finance Enoch Godongwana says the government is not considering introducing a wealth tax on South Africa’s richest citizens

Minister of Finance Enoch Godongwana says the government is not considering introducing a wealth tax on South Africa’s richest citizens, saying the country already has several measures in place to tax wealth.

Godongwana said this in a written parliamentary reply after Economic Freedom Fighters (EFF) MP Carl Niehaus asked about measures to address inequality, including a wealth tax on the super-rich and the nationalisation of key strategic sectors.

Niehaus 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 had responded to higher fuel prices by providing temporary fuel levy relief on petrol and diesel in 2026, at a cost of about R17.2 billion in lost revenue.