Black Economic Empowerment (BEE) is an essential part of South Africa's post-democratic economy. BEE can be achieved in a variety of ways, but whatever the means, the tax system acts as a hindrance or even a barrier to successful BEE implementation. This article considers the nature of the tax measures required to encourage BEE and discusses the related proposals announced by the Minister of Finance in his Budget Speech of 18 February 2004.