Cyril's tax relief will save businesses, but leave government broke

Cyril’s tax relief will save businesses, but leave government broke via @TheCitizen_News

2021-07-26 06:59:00 PM

Cyril’s tax relief will save businesses, but leave government broke via TheCitizen_News

The tax relief is much needed to help businesses get back on their feet, but economists warn that cuts will have to be made elsewhere.

The tax relief President Cyril Ramaphosa announced on Sunday night will help businesses to start trading again and create much-needed jobs, but government will be left broke and will be forced to cut other expenditure, such as education. Ramaphosa said government will defer payment of pay as you earn (PAYE) taxes for three months, to provide additional cash flow for businesses, with an automatic deferral of 35 percent of PAYE liabilities for employers with revenue of below R100 million. The Employment Tax Incentive (ETI), in place since 2014, will also be expanded for a period of four months by up...

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The tax relief President Cyril Ramaphosa announced on Sunday night will help businesses to start trading again and create much-needed jobs, but government will be left broke and will be forced to cut other expenditure, such as education.Ramaphosa said government will defer payment of pay as you earn (PAYE) taxes for three months, to provide additional cash flow for businesses, with an automatic deferral of 35 percent of PAYE liabilities for employers with revenue of below R100 million.

The Employment Tax Incentive (ETI), in place since 2014, will also be expanded for a period of four months by up to R750 per month to encourage businesses to employ workers by giving them a PAYE tax refund.ALSO READ:Ramaphosa said this will encourage employers to hire and retain employees, especially those in the retail and hospitality sectors who have been most affected. headtopics.com

A necessary evil, with consequencesProf. Jannie Rossouw from the Wits Business School says these tax breaks will help small and medium companies to get back on their feet, but on the other hand it will lead to cash flow problems for government because it has not collected as much money as it is spending now.

“There will now be less money for other expenditure, such as education. Apart from the national debt, government has nothing. The problem is also that these tax breaks have not been priced yet and we do not know how much it will cost.”Rossouw does not expect immediate changes to how much tax we pay to pay for these tax breaks, as it has become a principle that tax rates are only changed in February.

Economist Mike Schüssler also welcomed the news of the tax breaks, but emphasised that it will only be temporary, although it will help businesses. What worries him is that less will be spent on these breaks than is spent on the disaster relief grant.

“We need businesses more because they create employment. Government has already kicked the can down the road and now it is squashing the can. There will have to be cutbacks to make up for this,” said SchüsslerALSO READ:Budget 2021: Good news on income tax, bad news on booze, smokes and fuel headtopics.com

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Tito Mboweni, minister of finance, and treasury executives will brief the country on Wednesday about the continued support measures for South Africans amid the continuing Covid-19 impact on the economy.He will unpack the president’s announcements on the deferment of payment of PAYE taxes, as well as the deferment of the payment of excise taxes by the alcohol sector for three months to ease the burden on the sector as it recovers and the reinstatement of the R350 per month support grant to unemployed people until March 2022.

Read more: The Citizen News »

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Less to steal. CR strategy seems to be a sunsetting one now. Doesn’t seem like he has any intention or running for another term esp given so many odds against him. Almost as if he’s borrowing from the next term’s fiscus to save the current economy. Talk about kicking the can down the road. I invested R5000 with shantelll_142 by using my LUNO app and I make over R40,000 with just few steps, shantelll_142 is an account manager who can help you trade better I recommend you to her now and start earning massively today 💹

Aren’t they broke already? 🤷🏼‍♀️

LIVE | President Cyril Ramaphosa set to address the nation at 20:30 | News24COVID-19 | New infections: 9 718, new fatalities: 287, new vaccinations: 27 053. Total vaccinations: 6 384 382. The death toll is 69 775.

Cyril 'shocked' by claim that Rwandan govt hired spy firm to hack his phonePresident Cyril Ramaphosa is 'shocked' by allegations that the Rwandan government hired an Israeli spy firm to hack his phone. May he please excuse himself. He has dismally failed. Never seen a democratic govt worse than an apartheid one... Nare Cyril only word he knows ke 'Shocked' the man is always shocked hle.. yaak Thuma mina a shocked president 😂😂 I miss Zuma😂he was a laughing president not this mampara

IN FULL | President Cyril Ramaphosa moves SA back to level 3President Cyril Ramaphosa on Sunday moved SA back to alert level 3. This means that alcohol sales will be allowed, small gatherings can take place and interprovincial travel for leisure is back. Bitcoin is real only when you meet the right account manager to instruct you and guide you Since I met Lisagregory1421 my life has really turn around because of his skills in investing bitcoin with an original broker now I can afford what I couldn't few months ago Investing with Lisagregory1421 has brought my family so much joy, I've received R40,000 from my little funds i invested and I'm grateful, i advice everyone to invest with Lisagregory1421 she is God sent indeed 😇😇 I invested R5000 with shantelll_142 by using my LUNO app and I make over R40,000 with just few steps, shantelll_142 is an account manager who can help you trade better I recommend you to her now and start earning massively today 💹

Ramaphosa announces return of R350 grants, assistance for looted businessesThe president said the measures announced are meant to support the recovery of the economy and provide relief to the poor and those who are vulnerable as a result of the measures imposed to deal with COVID-19. Ramaphosa R350 level3 This is a good move but there's a high need for a change in the way it is given coz the post office couldn't handle it looking at that even now people are still flocking at their offices and go home having not received the money for a consecutive number of days.

Ramaphosa announces a string of social relief measuresPresident Cyril Ramaphosa on Sunday announced the return of the R350 Social Relief of Distress Grant, which will run until March 2022. Nation dependent on social grants for living not jobs Omaka Enzo nabo can now apply for this R350? The last time i heard, SA didn't have money.and we ended up borrowing money from IMF bank.and we were encouraged not to borrow money from IMF

Liquor industry welcomes return of legal sales and R7.5bn in tax postponementLittle reaction on the JSE after lifting of the fourth alcohol sales ban and extension of relief for businesses