SARS commissioner responds to wealth tax, and big shake up for the GNU

The South African rand fell to its lowest point in 18 months on Monday (7 April), while local stocks dropped sharply before beginning to recover.

This decline was largely triggered by U.S. President Donald Trump’s extensive tariffs and growing fears of a global recession, which unsettled financial markets.

The rand was trading at 19.58 against the dollar, down about 2.4% from Friday’s close, marking its weakest value since October 2023.

The rand’s losses increased after the White House labeled a media report, which suggested that Trump was considering a 90-day pause in tariffs for all countries except China, as “fake news.”

Additionally, local political developments further impacted the rand, which had already lost more than 3% against the dollar in the previous week.

On Tuesday (8 April), the rand was trading at R19.48 to the dollar, R24.91 to the pound and R21.38 to the euro. Oil is trading lower at $65.15 a barrel.

Here are five other news stories making waves in South Africa today:

Wealth tax: Responding to calls for a wealth tax in South Africa, SARS commissioner Edward Kieswetter said that decision is “above my pay grade”. However, he followed up by saying that wealthy South Africans were already significantly taxed, and that in many ways, the country has already has a wealth tax. [Business Day]

Shake up for the GNU: EWN reports that the African National Congress (ANC) national working committee (NWC) has decided to revisit negotiations with its Government of National Unity (GNU) partners and those who supported the budget. Insiders suggest this may lead to a Cabinet reshuffle.
[EWN]

Warning over social media posts: Social media lawyer Emma Sadleir has noted that South African law is catching up to social media activity, adding that punishments for sharing inappropriate posts, even if you aren’t the original poster, could include arrest, fines, and serious employment consequences.[MyBroadband]

Mercedes-Benz recalls cars: Mercedes-Benz has announced a recall for certain GLE models sold in South Africa due to a potential “unexpected” loss of power that could lead to accidents. The recall effects vehicles manufactured between 2022 and 2025. [News24]

Rand could hit R22/$: Investec chief economist Annabel Bishop said that tensions within the Government of National Unity (GNU) have tanked the rand, and if the DA leaves, the rand would likely head towards R21.00/$ immediately and then weaken to beyond R22.00/$ depending on the new partners of the GNU. [BusinessTech]