Tax incentive for young job-seekers to be assessed

Cape Town - The Employment Tax Incentive (ETI) for young work-seekers will be carefully assessed in due course, Finance Minister Nhlanhla Nene said when presenting his mini budget in the National Assembly on Wednesday.

Nene said there has been active debate around its impact. It must be also recognised that all programmes and incentives should be evidence-based and continuously evaluated.

He said the ETI continues to attract broad participation. Total claims for the incentive have amounted to R3.9bn since the start of the programme in January 2014, up to the end of July 2015. It has been claimed by over 36 000 employers, or over 250 000 workers.

Nene said the assessment of the incentive will complement research by the Davis Committee on the role of incentives in the corporate tax system.

He also stressed that cooperation with the private sector and an accommodation of small business is a necessity to grow the economy.

"Bold action is needed. Restoring the momentum of growth requires policy certainty, confidence and trust, shared between government, business, workers and households", he said.