Less red tape, a more investment-friendly environment and easing of turnover tax are just some of the measures aimed at boosting small business that were announced in Finance Minister Pravin Gordhan’s National Budget.
Minister Gordhan also announced the allocation of R6.5 billion over three years to support small and medium enterprises.
Turnover tax eased
Minister Gordhan said, “The turnover tax regime will be amended to further reduce the tax burden on micro-enterprises. Consideration is being given to replacing the graduated tax structure for small business corporations with a refundable tax compliance credit.
“Amendments will be made to the venture capital company tax regime, and the rules related to access foreign capital will be eased to enhance support for entrepreneurial development.”
Minister Gordhan also said that government was working towards cutting more red tape to allow small and established businesses to increase their competitiveness and to promote local and foreign investment.
Less red tape
Minister Gordhan said government had been engaging business on steps it can take to make it easier to do business in the country.
“Arising out of that process, we will now streamline regulatory licensing approvals for environmental impact assessments, water licences and mining licences.”
Other steps included lowering the cost structure of the economy through, for instance, improved efficiencies in freight logistics.
In addition, SARS was taking further steps to lower the cost of tax compliance in South Africa.
Read the full budget speech on the National Treasury’s website.