Treasury’s tax proposal slammed by venture capitalists
Move to limit abuse of incentives will reduce funding for small businesses, say industry representatives
The Treasury has proposed placing a cap on the annual tax deduction that venture capital investors can claim for their investments in the shares of these companies.
The measure is opposed by the Southern African Venture Capital and Private Equity Capital Association (Savca) which represents the venture capital industry and in 2017 had funds under management worth R4,3bn. Growth of the industry which stimulates the development of SMEs has been helped by the tax incentives granted by government.