The Treasury’s decision not to extend an incentive scheme that provides investors with a tax reprieve in exchange for investing in small, medium and micro enterprises (SMMEs) will accelerate the flight of capital out of SA, an association of asset management companies warns.

Despite appeals for an extension, the Treasury stated in budget documents tabled in parliament on Wednesday that the date for the venture capital incentive — which came into effect in 2009 to encourage investments in smaller businesses — will not be extended beyond June 30, arguing that the scheme had not served its purpose...

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