Wed Oct 26 19:11:06 SAST 2016
Former Wits SRC President Mcebo Dlamini. Picture Credit: Gallo Images
Dlamini ‘in facility where gays and police are placed’

Gauteng Community Safety MEC Sizakele Nkosi-Malobane on Tuessday reassured the public that student l.

VAT threshold lifted to R1m

By unknown | Feb 21, 2008 | COMMENTS [ 0 ]



Trevor Manuel has at last raised the VAT threshold - and he did it yesterday in spectacular fashion - pushing up the bar from R300000 to R1million.

Entrepreneurs will be cheered by the 1percent drop in corporate tax rates but many will be gloomy about the finance minister's refusal to grant significant tax concessions for those who have invested thousands in back-up generators.

The disappointment will probably be sharpened by the fact that Manuel chose to use environmental reasons against any generator concessions - just after outlining plans for the recommissioning of hugely "non-green" coal-fired power stations.

Small businesses were hoping that the existing Small Business Corporation (SBC) tax relief, for companies with turnovers of under R14million a year, would be extended so that generators could be written off within the year in which they were purchased. But SBC tax relief remains unchanged and most businesses will be able to write off the cost of a generator over three years.

The most tangible benefit for small businesses in this year's Budget is the reduction of corporate tax from 29percent to 28percent. The move strengthens the case for businesses to incorporate themselves as close corporations or Pty Ltd companies.

Manuel's announcement of R5billion worth of tax incentives for industrial investment and employment creation over the next three years will be watched with interest, especially in the light of his proposals on the mooted wage subsidy.

Less so the R2,3billion, three-year fillip for the Department of Trade and Industry to implement the industrial policy framework, and the R300million for small-business-specific support. Research shows that business owners' use of DTI small-business support programmes has remained very low over the past decade.


Login OR Join up TO COMMENT