President Cyril Ramaphosa has announced measures that would mitigate the impact of the virus on the economy from mild tax breaks, solidarity fund and increase support for small businesses, the informal sector and vulnerable workers.
He said the government had set up a Solidarity Fund that will pool funds from government, business and private individuals.
Government has already provided R150 million in seed funding while the private sector has pledged to make donations within the coming weeks.
“The Fund will focus efforts to combat the spread of the virus, help us to track the spread, care for those who are ill and support those whose lives are disrupted,” said Ramaphosa.
The President applauded Rupert and Oppenheimer families of R1 billion each to assist small businesses and their employees affected by the coronavirus pandemic.
Additional measures to assist small and medium businesses include using the reserves in the Unemployment Insurance Fund system to support workers in the businesses whose companies cannot provide them with support.
While large companies have been urged to support their workers during the shutdown.
“Tax compliant businesses with a turnover of less than R50 million will be allowed to delay 20% of their pay-as-you-earn liabilities over the next four months and a portion of their provisional corporate income tax payments without penalties or interest over the next six months,” Ramaphosa said.
This is expected to assist about over 75 000 small and medium enterprises while four million workers in the private sector earning under R6500 will receive a tax subsidy of R500 over the next four months.
(This is an excerpt from an article by Tebogo Tshwane – Moneyweb)
