Today’s Budget Speech has helped pave the way for business development in 2012.
This is according to Robert Gad, tax director at ENS (Edward Nathan Sonnenbergs), who welcomes these proposals by Finance Minister Pravin Gordhan to encourage development, investment and employment in South Africa.
“This is a budget with a mixture of positive and negative features including increases in some key tax rates. In the midst of that, its encouraging that government is proposing to spend some of its tax revenue by creating incentives in these pre-selected business zones in order to advance investment development and employment,” says Gad.
Furthermore, according to the budget speech, tax relief is under consideration for businesses that invest in these zones, including a reduction in the corporate income tax rate and support for employment and training expenses.
“It shows a balanced approach on the part of government – to be introducing and expanding incentives for growth and investment, which represent tax costs to the state, at the same time as tightening up on and raising taxes in other areas, in order to improve tax revenues,” says Gad.