Incentives to benefit business are welcome, a state-owned entity said on Wednesday in response to Finance Minister Pravin Gordhan’s 2013 Budget.
The Coega Development Corporation particularly acknowledged the special economic zones (SEZ) incentives.
“We are pleased to note that the government is embarking on a path to have government support mechanisms in place that will assist in the quest to enhance investor uptake,” Coega spokesman Ayanda Vilakazi said in a statement.
The SEZ programme, announced last year, had received funding to build world class industrial parks.
Discussions were being held with Trade and Industry Minister Rob Davies on specific tax incentives to enhance this initiative.
Gordhan announced earlier that a R2.9 billion tax incentive for SEZ would be introduced to encourage businesses to set up shop in these zones.
Firms would enjoy a 15 percent corporate income tax rate and also benefit from an employment incentive which Treasury planned to introduce, and which would allow a tax deduction for employment of workers earning less than R60,000 per year.
The CDC was formed in 1999 and mandated to develop and operate the Coega Industrial Development Zone. The zone is located close to the Nelson Mandela Bay (Port Elizabeth) municipality.
/* Style Definitions */
mso-padding-alt:0in 5.4pt 0in 5.4pt;
font-family:”Times New Roman”,”serif”;}
Article source: http://www.thenewage.co.za/85012-9-53-Coega_welcomes_incentives