The South African finance minister, Trevor Manuel, said on April 3 that he would soon name a task force to decide how to best implement a windfall tax on petrochemicals company Sasol. Sasol which was state subsidized, announced an increase in profits of about R2.9 billion ($480 million) because of higher oil prices in the last half of 2005. The windfall tax is popular politically because it will lead to a redistribution of income but tax professionals are concerned about its introduction. Sasol is expected to contest the committee's proposals but it is predicted the authorities will pass a law before the end of 2006.
South Africa plans windfall oil tax on Sasol
