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By Ben Bierman
Finance Minister Tito Mboweni delivered his 2021/22 budget speech on Wednesday.
There was good news for consumers because Mboweni has announced some tax increases. Although no amendments specific to small businesses were noted, the budget contained favorable amendments for each sector of the market.
Here are five takeaways for the local small and medium-sized enterprise (SME) sector:
While the corporate tax cut may be relevant for large businesses, it’s worth noting that the cut is likely to attract more international companies in South Africa, which in turn could stimulate the creation of more professional opportunities. However, Mboweni said the National Treasury will also limit assessed losses and interest expense deductions. This means that businesses may not see a reduction in their tax expenditures after all.
Mboweni said the government would expand its short-term economic support and undertake reforms to stabilize public finances. He also mentioned that the economic reforms planned by the government would remove obstacles to growth, reduce the cost of doing business, increase confidence and investments in the restructuring of the power sector, thereby ensuring sufficient supply.
Another good sign for small businesses has been the Treasury’s recognition of the importance of data. Mboweni said that reducing the cost of broadband and other costs associated with doing business…
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