There is little scope for tax incentives now that the Treasury needs to maximise revenue to keep the budget deficit down. The section 12J incentive now has just one year left to run, ending in June 2021. This has proved a successful creator of jobs in the small and medium enterprise (SME) area over the past five years, at a time when funding had dried up from banks and the public sector.

Section 12J Association chair Dino Zuccollo argues that the scheme has created jobs more economically than any of the government-backed job creation schemes. The association calculates that 12J schemes have created jobs for R126,000 each, which will fall to R30,000 when these businesses mature. Government job creation schemes created jobs for R450,000 each...

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