Data provided by iNet BFA
Loading...
See More

Sacci concerned by more business taxes

Feb 22 2012 18:43 Sapa

Related Articles

SA trade conditions idle in neutral

Sacci slates Gautrain bus problems

Copper theft declines

SA trade conditions dampen in December

Sacci: SA must act on Fitch concerns

Boost SMEs, Sacci tells Zuma

 
Johannesburg - The increase in taxes on business announced in the budget on Wednesday is concerning, SA Chamber of Commerce and Industry (Sacci) CEO Neren Rau said.

"Our biggest concern is the increased taxes on business - capital gains tax and the corporate tax," he said after the budget was tabled in parliament.

"We are a bit concerned about the impact that would have during a time when liquidity is fairly tight."

Rau said two key factors influence an enterprise's desire to invest: the economic outlook, which remains uncertain, and the policy environment.

"We have just come out of a very uncertain policy environment."

If 2012 could offer more certainty on policy, business might be more willing to loosen the purse strings and invest, he said.

Finance Minister Pravin Gordhan addressed two items on Sacci's wish list for small and medium businesses. The minister announced moves to ease the regulatory burden on small businesses.

This was "done reasonably well", Rau said.

The minister announced measures to ease the tax burden on small business.

"We do have reservations about the real impact of this," Rau said.

Gordhan said the tax-free threshold for small businesses would be increased to R63 556 in the coming year, while the 10% tax rate would be reduced to 7%.

The threshold to which this tax rate applied would be increased to R350 000.
pravin gordhan  |  neren rau  |  sacci  |  budget 2012
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...