Parks Tau says no new tax planned for black-owned firms fund
South Africa is still discussing whether to set up a new fund to promote Black-owned businesses, and suggestions that new taxes will be imposed to capitalise it are unfounded, the nation’s trade and industry minister said.
Policies aimed at racially transforming South Africa and their implementation are being comprehensively reviewed, and “the fund is a component of an overarching conversation,” Parks Tau said on the sidelines of strategy meeting convened by the African National Congress, the country’s largest political party, in Johannesburg on Sunday.
Its establishment is still at a conceptual stage, and will still have to be mapped out and pass through relevant government channels, he said.
The Democratic Alliance, South Africa’s second-biggest party and a member of the nation’s 10-member ruling alliance, last week said the trade department wanted to channel money to a R100 billion diversity fund to boost Black-owned businesses that would be raised by imposing new taxes on existing firms.
Under the country’s rules on so-called Black economic empowerment, companies contribute 3% of their annual after-tax profit to the development of Black suppliers through various initiatives.
“The transformation fund is not intended to be a new source of revenue, as alleged, by introducing an additional tax, it certainly is not,” Tau said. “It is looking at current equity-equivalent funding, it is looking at enterprise and supply development funding and other sources of funding.”
Comments
Research Reports
Projects
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
