HOW’S THAT POST-RACIAL SOUTH AFRICA COMING ALONG? Plan for a ‘white tax’ in South Africa.
Lamberti said that there is an increasing proliferation of transformation funds requiring businesses to pay into them.
“This represents a whole new offshoot of BEE. This could be a manifestation of the latest phase of BEE or of the direction the policy is generally moving.”
He said this shifts the transformation to where, instead of structuring equity deals, businesses just put money into a big government slush fund through equity equivalents.
“So, you just pay the money. Just pay the ‘white tax’, so you can pay to play. Once you’ve paid the tax, you’re allowed to participate,” he said.
Lamberti said that there are several problems with the transformation funds, which are essentially a white tax.
“Beyond the ethical issue, it still represents a considerable cost. This cost can easily be ratcheted higher at the government’s discretion,” he said.
Related: The Creeping Tide: South Africa’s Race Law Index Updated – More Laws, More Concerns.