Tito Mboweni to provide update on investment incentive scheme in budget

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Investors fear the scheme that provides a tax reprieve in exchange for investing in SMMEs will not be extended

Investors are edgy over the future of an incentive scheme that provides them with a tax reprieve in exchange for investing in small, medium and micro enterprises in selected industries.

The scheme was put in place by the government in 2009 in a bid to attract investors into underfunded SMMEs, and to boost economic growth. The government introduced a clause into the Income Tax Act, which offers taxpayers a 100% tax deduction if they invest in SMMEs in selected sectors. It is the only investment that allows people who have bought shares in these companies to claim up to 100% deduction of their investment with the SA Revenue Service ...

 

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