Call to relax tax laws for entrepreneurs

“The NDP identified small businesses as the key driver to eradicate unemployment, but compliance with tax laws remains a massive obstacle to many entrepreneurs,” said Sharon Smulders, head of tax policy and research at Sait.Smulders believes the current turnover tax regime, introduced in 2009, should be revised in order to remain relevant for the changing business environment.“We commend the initiative of President Jacob Zuma to follow in the footsteps of former President Thabo Mbeki in establishing a commission of enquiry into tax policy,” said Sait’s chief executive Stiaan Klue.In 2010 Judge Dennis Davis, who was the deputy chair of the 1996 Katz commission of enquiry into taxation, called for the re-establishment of an enquiry into tax policy reform, pointing out that the final report of the Katz Commission was never presented to parliament or released to the public.Klue said that the global financial crisis and the growing budget deficit highlight the need for a critical re-analysis of the sustainability of the South Africa’s tax policy.”An analysis of the lessons learnt over the past 18 years must be conducted, and should inform a new strategy which can achieve a more balanced democracy in the NDP for 2030 and beyond,” Klue suggested.The institute also proposed a relaxation in the current provision in the Income Tax Act for registered internships. It said that this would address the youth wage subsidy and satisfy employers, labour unions and unemployed graduates.

via Call to relax tax laws for entrepreneurs | Fin24.

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