Treasury scraps R20m cap on employer’s employment tax incentive claims
The Treasury has accepted to the plea by business to scrap the R20m cap on annual claims per employer under the employment tax incentive.Business Unity SA and other large employers argued during parliamentary hearings on the incentive that the cap would limit the effectiveness of the programme which had been successful in enhancing youth employment.The Treasury has proposed to extend the life of the incentive for two years after it expires at year’s end.Treasury officials responded to the submissions made during the hearings at a meeting of parliament’s finance committee on Tuesday.Treasury director Christopher Axelson said a "compelling" case was made that the proposed cap would come at the cost of higher levels of employment.Treasury had rejected the proposal to raise the cap, he said, as its analysis "indicates that a higher cap would affect only a handful of claimants and would therefore be ineffectual".Axelson said Treasury and the SARS would monitor the affordability of the pr...
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