The SDS argues that taxes need to be proportionate to the "economic power" of the taxpayer, which the real estate tax is not.

Allowing municipalities to raise or cut the tax rate will destabilise the tax environment and the amount of tax will "suffocate" businesses as well as farmers and local communities.

The party did not specify on what constitutional grounds it would challenge the act, saying merely that the tax "runs contrary to several articles of the Constitution".

The statement comes after the National Assembly on Friday overturned an upper chamber veto on the act, effectively making it law.