New BEE tax on the cards for South Africa

• The South African government is considering a voluntary BEE tax of 3% of gross revenue to fund transformation initiatives.
• The proposed tax, first suggested by entrepreneur Alan Knott-Craig in 2025, would allow businesses to avoid BEE regulations while contributing to the president's transformation initiative.
• The effectiveness of the voluntary tax is uncertain due to concerns about poor spending and the potential for it to become a mandatory levy, with critics warning that funds may be diverted to unworthy causes rather than meritorious BEE candidates.