EFF's Omphile Maotwe advocates for 'apartheid tax' to safeguard vulnerable families from VAT hike
EFF treasurer-general Omphile Maotwebhas urged the government to tax the rich more.
EFF Treasurer-General Omphile Maotwe has urged the government to introduce an "apartheid tax" on inherited apartheid-era wealth instead of raising Value Added-Tax (VAT).
Speaking to journalists outside the Western Cape High Court on Tuesday—during the first hearing challenging the legality of the planned VAT hike—Maotwe argued that such a tax reform would not only generate significantly more revenue than the R28 billion shortfall the government seeks to address.
She said this would also ease growing tensions within the Government of National Unity (GNU) over fiscal policy.
She further criticised Finance Minister Enoch Godongwana for lacking the political will to impose taxes on the wealthy, suggesting that the Minister was 'afraid to approach the rich,' and instead opted for a VAT increase that disproportionately impacts the poor.
'That will give you far more money than the R28bn they're looking for. But the easy target is often the poor. We can't afford to put bread on the table. Imagine with the impact of the VAT increase.
'Our people will die from poverty. The triple oppression of poverty, inequality and unemployment is going to get worse,' she said.
The EFF and the DA requested the court to halt tax hikes, arguing that it will cripple the public's pockets. The court is yet to rule.
The hike is expected to come in on May 1.
In his defence, Finance Minister Godongwana emphasised the necessity of the VAT hike to sustain critical public services, including healthcare, education, transportation, and public safety.
Legal submissions from the Treasury argued that the VAT increase is the most viable and sustainable option given current fiscal constraints, limited borrowing capacity, and the risks associated with further budget cuts.
In contrast, Maotwe has advocated for a more progressive taxation approach.
She has called on the government to shift the fiscal burden onto high-net-worth individuals by introducing a wealth tax and closing loopholes that allow trusts and luxury properties to evade fair taxation.
'We are telling him he doesn't need to increase VAT. He needs to tax the rich. Introduce a wealth tax. Many trusts hold luxury properties which are not being taxed, but they use the portfolios to apply for loans at the banks,' she said.
She also proposed an increase in the corporate tax rate from the current 27% to 29%, citing strong profit margins in the private sector.
kamogelo.moichela@iol.co.za
IOL Politics
Get your news on the go, click here to join the IOL News WhatsApp channel.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
6 hours ago
- Daily Maverick
Mr Lesufi, you have 72 hours to put this motion into… motion
ActionSA is crowing about proposals the Gauteng government will definitely, certainly, assuredly get to, soon. It's rather touching – the trust ActionSA has in the power of the Gauteng provincial legislature. The other day, ActionSA's website trumpeted a great victory. The minority party motioned two motions, one to do with traffic lights and the other to do with provincial oversight. And both motions were unanimously adopted! Hooray. Unanimity surely does not happen very often in our legislatures, whether provincial, national or any other kind. The piece on the ActionSA website, signed by Funzi Ngobeni, the party's provincial chairperson in Gauteng, states eloquently: 'The first motion, introduced by Emma More MPL, calls on the Gauteng provincial government to urgently address the persistent failures of traffic light infrastructure. The impact of malfunctioning traffic lights on road safety, productivity and the economy is staggering. Every 37 minutes wasted in traffic costs commuters approximately R28,000 annually.' Wow. R28,000! Divide that by 37 (why didn't they do that?) and you get R756.75 wasted every minute. Why does R756.75 per minute feel like more than R28,000 every 37 minutes? Is it simply because I, for one, though I'm one of many, am terribly bad at maths, or is it because that odd number – 37 – confuses the mind in some special way that only prime numbers can? Whatever the case, I can imagine there would have been some questions about the enormity, or failing that, the enormousness, of R28,000, especially in a province where, the Auditor-General informed us recently, the huge Johannesburg metro dispenses R2.8-billion in 'unauthorised expenditure' every year. That's an unauthorised R100,000 (if my calculations are correct) for every 37 minutes you've spent waiting at a broken traffic light. Personally, if I'd waited 37 minutes at a traffic light that was clearly nonfunctional, I'd surely have to check myself into the nearest mental health facility to see whether I really am a true Joburger. Most of us don't even wait 37 milliseconds. But let us not get distracted by personal matters. Rather, let us reconsider those numbers. R2.8-billion in unauthorised expenditure every year? Calculated differently, that's R100-million for every ANC member of the Gauteng provincial legislature. Yes, there are indeed 28 ANC members of the provincial legislature, and I'm beginning to feel a conspiracy theory of the Da Vinci Code kind coming on… What's it with all the 2s and 8s? Next there'll be a link to the 28s gang! Still, the numbers, fascinating though they are, are not my main point here. Nor is the fact that the ActionSA motions were 'unanimously adopted' – the second one, about giving MPLs more oversight, too. Are all the parties in the Gauteng legislature in a coalition? That would certainly solve some problems. Anyway, that unanimity is pleasing. The last time any South African legislative body was unanimously in support of anything was when it was declared that smoking was bad for you and should be legislated out of existence. What I find so touching is the faith ActionSA has in the Gauteng legislature of which it is so vibrant a part. Motion your motion, get it unanimously approved and… what? Are all the bodies and persons responsible for traffic lights now going to knuckle down and soon all the traffic lights in Gauteng will be moving serenely through their cycle of green, red and orange without interruption? You will note they didn't put a time frame on it. No, they didn't commit the strategic error of the ANC's Gauteng premier, His Highness Panyaza Lesufi, when he said in his State of the Province Address, I think it was, that all potholes would be fixed within 72 hours. That is, if I understand the premier correctly (yes, I know it's difficult), no more than 72 hours would elapse between the reporting of that pothole that's just opened up in your street and its successful closure – sorry, 'resolution', by pothole officials. A strategic error, I say, because I've been keeping an eye on most of the 47 potholes within a kilometre of my house and they're still there – whereas it's certainly more than 72 hours since the premier made that promise in his speech. Perhaps some time has to elapse before that promise becomes an instruction to the relevant civil servants, and then perhaps a mandatory period has to elapse before any action is taken? Perhaps Lesufi forgot to add 'And this will become law in a year's time,' or something like that? Timelines for instructions from above to be heard and acted upon by those below seem variable, but I'm sure if it doesn't happen, Lesufi can blame his coalition partners, or perhaps just the Democratic Alliance (DA), whose members are well-known subverters of any good idea the ANC comes up with. I mean, the DA has been complaining since the aforementioned State of the Province Address (or Sopa, which means 'candyfloss' in seven of South Africa's 12 official languages) that all the thousands of kitskonstabels (instant constables) hired by Lesufi to help curb crime in the province haven't helped. Not to mention the helicopters. There are helicopters? Lesufi bought helicopters for the kitskonstabels? And we thought it was only BMWs. Let's not go down that road, or at least not today. It is a road with too many potholes. And maybe that R28,000 wasted every 37 minutes pales next to some of the other numbers thrown up by the Auditor-General. Johannesburg, she said, had awarded more than R987-million to contractors 'with close ties to employees or councillors' of the city. That's what a journalist of the yellow press variety would call a pretty 'dodgy tender'. Okay, R987-million is a large amount of money and should probably be looked into – though the relevant officer of the city was already fingered in a dodgy tender case but has been cleared of Special Investigating Unit charges by a mysterious inner ANC process. Still, R987-million is a lot less than R2.8-billion. This is surely an incontrovertible fact, even to those expensive lawyers hired by the ANC to compose internal reports that the mayor can leave in his bottom drawer for a few decades. At least the Honourable Premier of Gauteng, Mr Lesufi, didn't object when the ActionSA motion calling for more oversight by MPLs was passed unanimously – so, by the 28 ANC members too. They obviously endorse the idea that, in Ngobeni's words, the 'motion responds directly to the executive's pattern of disregarding legitimate oversight interventions such as its failure to place the Emfuleni Municipality under mandatory administration despite sustained collapse'. 'Sustained collapse' may be oxymoronic, but never mind. ActionSA goes on, in a distinctly firm tone of voice: 'The unanimous support for these motions sends a clear message: accountability, transparency and basic service delivery are non-negotiable. 'We commend all political parties that voted in support [that's everyone, then], and we call on the Gauteng executive [that's Lesufi] to immediately act on the resolutions of the house.' Did you hear that, Mr Lesufi? You have 72 hours. DM Shaun de Waal is a writer and editor. This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
IOL News
7 hours ago
- IOL News
EFF, MKP demand accountability from Shamila Batohi over NPA sabotage claims
The National Prosecuting Authority under Advocate Shamila Batohi is facing significant challenges. Image: Henk Kruger National prosecutions boss Shamila Batohi is facing renewed criticism from several parties, including the EFF, the uMkhonto weSizwe Party and ActionSA, over her recent statements about sabotage within the National Prosecuting Authority (NPA). Last week Batohi, responding to intense criticism over several embarrassing defeats in high-profile cases said there had been "infiltration" of the prosecution service but later backtracked, saying she had use the wrong term and instead that certain cases were being deliberately sabotaged. Despite the backtracking by Batohi, the parties remain unconvinced and are demanding accountability, saying if there is sabotage then this happened under her watch and she should take responsibility by stepping down. The MK Party, on Monday, expressed concern over Batohi's statements, emphasising the need for transparency and accountability within the NPA. 'We are the first ones to call for her (Batohi) head. It's been three weeks since we made that call. She has shown that she is incompetent and therefore must go,' MK Party spokesperson Nhlamulo Ndhlela said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Last week the EFF wrote to National Assembly Speaker Thoko Didiza, requesting an urgent debate on what it believes is an institutional crisis at the NPA. There is concern after the NPA was dealt a major blow in the case against former ANC secretary-general Ace Magashule when the court ruled that the extradition from the US of his former PA, Moroadi Colota, was invalid. The NPA has also been slammed for bungling the case against Nigerian televangelist Timothy Omotoso, who was acquitted on more than 30 charges of sexual assault. The NPA's failure to secure the extradition of the Gupta brothers, nearly a decade after the Gupta Leaks scandal, has also raised questions about the authority's effectiveness. The EFF said Batohi's remarks suggest undue influence is being exerted on the NPA, compromising its ability to secure justice and accountability. "This is not a casual institutional complaint. It is a constitutional red flag of the highest order," the EFF said. "An assertion from the NDPP herself that the NPA has been infiltrated should send shockwaves throughout every organ of state," the letter read. ActionSA parliamentary leader Athol Trollip called for Batohi's immediate removal, citing the NPA's repeated failures in high-profile cases. "The NPA has become a refuge for politically connected individuals, a place where accountability is avoided, justice is delayed, and prosecutions collapse with shocking regularity. "Under Batohi's leadership, the NPA reels from one scandal to the next. South Africans are left wondering if these failures are merely a result of incompetence, or is there a deliberate agenda to protect the corrupt,' Trollip said. NPA spokesperson Mthunzi Mhaga did not answer questions sent Monday. Batohi had said that if she felt she was underperforming, then she would step down immediately. However, the parties are not satisfied with her explanation and are demanding that she take responsibility. The DA has expressed concerns about the NPA's failures but has stopped short of calling for Batohi's removal. Instead, the party wants Batohi to explain the failures. The DA last week announced a reform package aimed at rescuing the NPA and restoring justice for victims of corruption. According to the DA, the NPA is currently "broken" and has failed to secure successful prosecutions in high-profile corruption cases. To address these issues, the DA's Spokesperson on Justice and Constitutional Development, Glynnis Breytenbach, proposes a series of reforms.
The South African
8 hours ago
- The South African
'White smokescreen': Cyril Ramaphosa's desperate strategy exposed
In his latest video post, Rob Hersov says US President Donald Trump wants to see legitimate policy change in South Africa. South African capitalist activist and entrepreneur, Hersov suggests Trump is not interested in a white South African ambassador to the US. Meanwhile, Hersov also recently weighed into the issue of the genocide of white farmers in South Africa. He appeared as a guest on the 'Rob Schmitt Tonight' show on Newsmax. He called the 'Kill the Boer' chant of Julius Malema's EFF party 'fundamentally evil' and a 'disgrace'. Meanwhile, Hesov recently also delivered a hard-hitting open letter to US President Donald Trump and US ambassador-designate Brent Bozell, in which he exposed the ANC's corruption, anti-American stance, and destructive governance. Hersov delivered the letter via a video uploaded to his Truth Report News YouTube channel. The video came ahead of South African President Cyril Ramaphosa's trip to the US where he met with Donald Trump in Washington DC on Wednesday, 21 May. Hersov's video has divided opinion among South Africans. Some called for Hersov to join the 49 white Afrikaner 'refugees' in the United States, while others simply stated 'he's telling the truth'. Below, just a handful of the comments left on the Facebook post which went viral this week. America has become an International Court of Law. Let's South African people solve their problems those who want to relocate to America they are more than welcome to do so . What I believe in is even America have problems like any other countries. They are not special. Let's share the Land – Mabaso He's telling the truth – Siyabonga Thank you for fighting…with us… – Hettie Let him go join the 49 farmers/car guards – Aquiline As if Trump owns South Africa! What the hell is he gonna do about that info that ANC is destroying SA? Trump himself is destroying America and that's not Africa's problem. ANC was voted into power by citizens of SA. Trump fits nowhere on that matter – Kholofelo Guys please enlighten me… how come is Donald Trump a saint while he has so many convictions of corruption…. how is he going to safe SA.. from corruption… – Ngazi Is he wrong though ? We cry everyday on how these comrades abuse our country – Angelo I'm yet to hear Rob Hersov speak about South Africa without mentioning the US – Mpilonhle Which is true, anc are just criminals all of them – Alfred Politicians are using Trump to fight the ANC but they don't see that they are making ANC stronger, everytime i see racist comments i am also reminded of the pain our parents went through. These parties must not take the apartheid effect light because people rather vote for a corrupt ANC as long as they are lead by a black government.. Apartheid really feels like it happened yesterday hence it's not easy to forget especially when you see some people commenting like it's not a big thing – KG ANC needs to automatically step down n give the other party a chance to lead, just once. I want to see something – Zodwa Racists like this keep dividing South Africa which is dangerous, and they know if shit hits the fan by this behavior they will be the first one to run because they have dual citizenships and money, they think this Trump will be President forever – Clive There is some truth is this, SA is listed as a dangourous country, it's goverment is corupted and it's looks like it's going backwards instead of forward. Durban Beachfront now and 30 years ago, huge diffrent. That place looks so dodgy now. Especially the backroad that was once busseling with life. I disagree that Trump is The Man. He's just an Orange idiot who puts his nose where it doesn't belong. He should deal with the mass shootings and poverty in his own country. As this moment nearly half the world dislikes America, not just the SA goverment. Free that sniper dude who missed and give him a second chance at aming properly – Brenda Praise God for this man. Kudos to you Rob, kudos to you my man – HoofSeun He can write to whom he wants to. Not other people's business – Elize Meanwhile, in another video this month, Rob Hersov says South Africa just picked a fight with the most powerful country on Earth … America. And it wasn't by accident. It was by design – reckless, arrogant, and utterly self-destructive, he added. As always, Hersov pulled no punches. Full transcript below the video: South Africa just picked a fight with the most powerful country on Earth – America. And it wasn't by accident. It was by design – reckless, arrogant and utterly self-destructive. Let me give you the facts: South Africa is one of the top 10 countries that consistently votes against the United States in the United Nations. In 2018, South Africa's ambassador to Venezuela offered military support – military support – against a potential US invasion. The ANC has endorsed dictators like Fidel Castro, Gaddafi, Mugabe, Stalin, and even Mao Zedong. And in 2019, the US, UK, Germany and other countries warned South Africa to fix corruption or kiss investment goodbye. And what was the ANC's response? To call those countries imperialist threats and double down on their anti-West rhetoric. And in 2020, ANC members chanted, and I quote, 'One bullet, one American outside the US embassy in Pretoria.' And South Africa's embassy in Washington DC? It's essentially defunct, no ambassador for two years, pure diplomatic negligence. Mr Trump's Truth Social post 2 February was the first of many warning shots and yet the ANC did nothing. So let me give you the truth behind the numbers. South Africa's so-called non-aligned status is a lie. Publicly neutral, privately pro-China, pro-Russia, pro-Iran and cozy with human rights abusers. And what don't they want you to know? Well, the ANC is actively undermining Western partnerships. They've gutted our embassies, alienated allies and openly backed terror-linked groups like Hamas and Hezbollah. And the ANC take bribes from Iran to sue Israel and the ICJ. This isn't diplomacy, it's delusion. Free markets, crumbling, western values, rejected, and traditional principles? Traded for populist posturing and Marxist nostalgia. So here's the wake-up call. Why aren't more South Africans screaming about this? Because the ANC has wrapped itself in the liberation flag while torching the nation's future. The ANC has been bootlicking China and Russia while insulting the only countries that have ever offered us prosperity. But Donald Trump is back and he's watching, he's reading, he's listening, and he's getting ready. What's the bottom line here? Well, we have a path forward. The path forward is to fire the diplomats who can't do their job, rebuild our embassies with professionals, not cadres. And let's recommit to the West, because that's where the investment, the innovation, and the future lies. We know that, the majority of South Africans know it. The stakes? Well the stakes are high. Without AGOA we're going to lose 250 000 jobs, factories are going to close, farmers will go bankrupt, food security out the window. And the G20 Summit we're hosting this year is destined to be a humiliating disaster if President Trump and other important leaders boycott – which is likely. Other African nations are playing it smart. Kenya, Rwanda, Zambia, even Zimbabwe, they're reaching out to America. They're making deals while we're burning bridges. South Africa doesn't have to be a failed state, but to save this country we need leaders with courage, not cowards in suits. We need the truth, not ideology. So here it is, loud and clear: Fix this damn foreign policy before there's nothing left to fix. Let's put South Africa first, at last. Robert Basil Hersov, born on 9 October 1960 in Johannesburg, is a business executive and entrepreneur. His grandfather, Bob Hersov, was the founder of AngloVaal, one of Southern Africa's largest mining and industrial companies. His father, Basil Hersov, ran the company from 1973 to 2001. The family sold AngloVaal in the 1990s. Rob Hersov serves as chairman and CEO (and founder) of Invest Africa, Chairman and Partner (and founder) of African Capital Investments. His parents are Basil Edward Hersov and Antoinette. Hersov matriculated from Michaelhouse in the KwaZulu-Natal midlands. In 1982 he studied at the University of Cape Town and obtained a degree. In 1989 he obtained his MBA from Harvard Business School. He began his career at Goldman Sachs in New York and then became head of the European media investment banking team at Morgan Stanley in London. From 1989 to 1991 he was business development manager at News Corporation in New York for chairman Rupert Murdoch. After this he became a board member of the luxury goods company Richemont SA, and also managed FilmNet. He then became CEO of Telepiu Srl in Milan, Italy's largest pay-TV company, belonging to the Mediaset media group, where he was also a member of the board of directors, until August 1997. In 1999, he started his own business as an investor and entrepreneur. In September 1999, he co-founded Antfactory; in November 1999, he helped found In 2021, he acquired Fisantekraal Airport, west of Durbanville, and renamed it 'Cape Winelands Airport'. He aims to develop it into a vibrant airport and secondary hub for Cape Town. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
