/ 12 November 1997

Business rejects wealth tax

WEDNESDAY, 11.00AM

AN idea presented to the Truth and Reconciliation Commission special hearings on business and apartheid that wealth accumulated during apartheid be taxed for redistribution has been rejected by business groups.

Stellenbosch University economist Professor Sampie Terreblanche suggested an annual 0,5% tax for between 10 and 20 years on all individuals holding net assets worth more than R2-million to restore “the necessary degree of social justice and social responsibility”.

Said Terreblanche: “Such a tax would be levied mainly on wealth accumulated during the long period when the structures of white political supremacy and racial capitalism enriched a relatively small white elite to the detriment of the oppressed majority.”

However, former Barlaow Rand chairman and SA Chamber of Business member Mike Rosholt disagreed, saying: “I think business should pay its taxes and government must pay for reparations out of that. I don’t see any justification for a special tax for reparations.”

TRC chairman Archbishop Desmond Tutu earlier called on businesses to make “substantial” contributions to the President’s Fund, established under TRC legislation to pay reparations to apartheid victims. No business has yet responded to Tutu’s call.