Thumbs up for the Treasury’s approach to tax incentives
Rather than a menu of incentives, it is preferable to have a lower corporate tax rate across a broader base, one tax expert says
The Treasury was moving in the right direction in its review of tax incentives with the aim of lowering the corporate tax rate, tax expert Kyle Mandy said on Wednesday at the annual tax indaba.
The Treasury announced in the February budget that the government intended to restructure the corporate income tax system “over the medium term” by broadening the base and reducing the rate. Broadening the base will involve minimising tax incentives and introducing new interest deduction and assessed loss limitations. Rate reductions will be implemented in a revenue-neutral manner.