EDITORIAL: Corporate tax cut could have unintended consequences
Government makes right move to lure investors but limitation on assessed losses could cripple some companies
26 February 2021 - 05:09
On the face of it, the Treasury’s proposal to cut the corporate income tax rate by one percentage point to 27% sounds like just what the doctor ordered to attract private sector investments and lift their economy that had been stuck in the downward spiral even before the pandemic-induced downturn.
Finance minister Tito Mboweni on Wednesday put forward a range of tax reform ideas, the stand out of which is the recommendation that the rate of tax on companies should be reduced from 28% to 27% with effect from April 2022. ..
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