WATER BOMB
SMME businesses is stopped or delayed by some government officials due to bureaucracy or corruption by backhanders.
“Working with social partners, we remain committed to improving the legal and regulatory environment in which the SMME sector operates.
“We are ensuring access to markets, finance, skills training, and access to quality infrastructure for SMMEs, especially in townships and rural areas.
“Under the soon-to-be finalised Public Procurement Bill, organs of state will be required to subcontract SMMEs to a minimum of 30% of the value of the contract for contracts above R30 million.
“Whoever receives a tender must subcontract a minimum of 30% of the value of the contract to SMMEs that are at least 51% black-owned. Government will strengthen monitoring and compliance through the office of the chief procurement officer.” Ramaphosa said government wanted to promote local production to the benefit of SMMEs through the procurement of designated products – deepening public participation.
“The tax regime for SMMEs is being simplified. An example of this is the requirement for annual, rather than biannual tax returns.
“Grants received by SMMEs are also tax-exempt. Enhancements have also been made to the venture capital company tax regime to encourage investment in small businesses and junior mining companies,” said Ramaphosa.
The time, said Ramaphosa, was “upon us to reignite the township economy for the purpose of growing an inclusive economy”.
He said the Township Entrepreneurship Fund he announced earlier in the year, aimed at stimulating the township economy and creating dynamic markets in high opportunity sectors, was being finalised by the minister of small business development.
“With the local and global economy under pressure, it is small enterprises that present the greatest potential. But despite SMMEs being fundamental to the growth of our economy, they are often overlooked when it comes to both government planning and investment.”–
The tax regime for SMMEs is being simplified