Tax incentives create thousands of new jobs, ministers tell Parliament
The Department of Trade and Industry approved more than R20bn in industrial finance in 2016-17, creating 27,000 new direct jobs and about 108,000 indirect jobs. This emerged from a briefing on Tuesday by the economic and employment cluster of ministers chaired jointly by Rural Development and Land Reform Minister Gugile Nkwinti and Science and Technology Minister Naledi Pandor. The Department of Trade and Industry’s incentive programme incorporates the automotive, clothing, critical infrastructure, film and business-process outsourcing sectors, as well as special economic zones and the manufacturing-competitiveness enhancement programme. The incentive expenditure of the department is sometimes criticised for being a waste of money, but Trade and Industry Minister Rob Davies told MPs the World Bank had noted in an update report on SA the country’s investment tax incentives "have contained job destruction in industrial sectors" and "have encouraged additional investment in agriculture...
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