Publications
Partners
Cape Town - This year, more than R7bn will be transferred directly from the fiscus to support the operations of South African companies, which also receive about R24bn in annual tax incentives, according to the mini budget tabled in parliament on Wednesday.
This will be seen as a positive gesture in helping the private sector create wealth, growth and employment in SA.
Finance Minister Nhlanhla Nene also said at a press conference before his speech in the National Assembly that there is no way “this economy can grow if the private sector is not on board. The government must regularly communicate with them".
A number of additional proposals to increase incentives to the private sector have also been raised for consideration.
The first phase of the Economic Competitiveness Support Programme, which was introduced in 2011/12, concludes in 2017/2018.
Over the six-year period, total allocations to this programme amount to R22.7bn. The programme supports training, equipment and technological upgrades to improve competitiveness as well as research and development.
Government intends to renew the programme following a review of all business incentives.
The review, which will be conducted during 2016, will assess the impact of incentives on economic growth, productivity, competitiveness, the balance of trade and employment.
Particular focus will be given to job creation and the need to incentivise labour-intensive economic activities. The outcomes of the review will inform the allocation of resources for business incentives in 2018/2019 and beyond.
