Luyt said in a statement on Thursday that he was "horrified" that a windfall tax was considered on Sasol.

Who will be next?

"I suppose that the platinum mines will be next if the platinum price stays high while SABMiller can expect a windfall tax after good beer sales during a warm summer.

What about Telkom? Effectively this company (Telkom) has been protected from competition which resulted in obscene profits at the cost of the economy.

"If a super tax is considered for Sasol, other companies will logically have to expect to be next. Instead of damaging SA's investment environment rather create the environment for more Sasols to be created."

On Wednesday in the 2006 Budget, the Treasury said given the substantial windfall gains reaped by the country's synthetic fuels industry in times of high crude oil prices, the government would appoint a task force to investigate a possible windfall tax on additional income by Sasol and state-owned PetroSA.

Finance Minister Trevor Manuel presented the latest Budget in Parliament on Wednesday during which it was revealed that the investigation would take place over the coming year.

Govt won't be 'reckless'

On Thursday Manuel told a business breakfast in Cape Town that there was "nothing in the track record" of the government that would suggest that it would be reckless in applying any windfall tax on the profits of Sasol.

Meanwhile, Luyt said his party was of the opinion that Manuel missed "a golden opportunity in not lowering South Africa's corporate tax rate. Furthermore, it is unlikely that the Budget will do much to support the Accelerated and Shared Growth Initiative of government".

Luyt, a former Member of Parliament whose party has two members in the Gauteng legislature, said he welcomed the lowering of the tax on the retirement industry.

"Lowering the tax on savings in SA should obviously be supported," said Luyt.

He said the increase in the threshold for transfer duties should be supportive of the property market and should make it easier for first time homeowners to afford a home. "Hopefully we will see more of the same next year and eventually the scrapping of this tax."

Luyt said he was also pleased with the adjustment in personal income tax brackets. "However, we had hoped for a lowering in the marginal tax bracket for individuals."

Generally the Federal Alliance was pleased with the increased allocation to capital expenditure but doubted the State had the capacity to fulfill budgeted promises.

"The State's track record on capital expenditure is dismal and budgeting for more and more capital expenditure without actually spending the money is an exercise in futility."