National Treasury has published details of tax measures aimed at cushioning small and medium enterprises (SMEs) and vulnerable firms from the impact of the coronavirus outbreak.
The measures will be subject to retrospective enactment in Parliament later in 2020. They include a tax subsidy to employers of up to R500 per month for the next four months for private sector employees earning below R6 500.
The South African Revenue Service (SARS) will also accelerate the payment of employment tax incentive reimbursements from twice a year to monthly.
Minister @tito_mboweni has announced exceptional tax measures as part of the fiscal package outlined by President Cyril Ramaphosa. These measures are over and above the tax proposals made in the 2020 Budget on 26 February 2020. https://t.co/bpHTpsMilm and https://t.co/T3Rbp7DVbK
— National Treasury (@TreasuryRSA) March 29, 2020
Tax compliant businesses with a turnover of R50 million or less will be allowed to delay 20% of their employees tax 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.
The measures will take effect from 1 April 2020.
In the video below, a discussion on potential impact COVID-19 will have on SA economy:
Relief at the pumps:
The announcement of tax relief measures by the Treasury comes as a relief at the pumps also loom for South Africans.
Petrol prices in the country will go down from midnight on Tuesday.
The price of 93-octane will decrease by R1.76 cents per litre and 95-octane by R1.88 cents.
The price of diesel will go down by R1.33 cents and R1.34 cents a litre for different types of fuel.
The price of illuminating paraffin is set to decline by R1.84 cents a litre.
Minister of Minerals Resources and Energy Gwede Mantashe has attributed the price cuts to the current local and international factors.
ADJUSTMENT OF FUEL PRICES
EFFECTIVE FROM 01 APRIL 2020
— Gwede Mantashe (@GwedeMantashe1) March 27, 2020
The petrol price drops are substantially less than those forecast by the AA and are due to the fuel price levy, among other things.
[FUEL PRICE OUTLOOK] All fuel prices set to drop at month-end: https://t.co/VneHDjAqcw #FuelPriceOutlook#SAFuelPrice @LaytonBeard @Philip_Purnell @_ArriveAlive @SABCNewsOnline @ewnreporter @Radio702 @947 pic.twitter.com/QDgwr1TcpP
— AA South Africa (@AASouthAfrica) March 27, 2020
In the video below, is an interview on reasons behind the looming price drop: