DA’s proposals to improve manufacturing include slashing the sector’s tax rate
Proposals also include a price-premium for goods purchased by organs of state, with local state procurement subject to a ‘purchasing audit’
The DA has come up with policy proposals to address the decline in the manufacturing sector, which include slashing the corporate tax rate for manufacturers from 28% to 15%. Another key pillar of the proposals to rescue the sector is to stimulate local demand by allowing a price-premium of up to 20% for goods purchased in SA by organs of state compared to their imported equivalents. The proposals were released this week by DA trade and industry spokesperson Dean Macpherson, deputy spokesperson Ghaleb Cachalia, DA MP Gwen Ngwenya, and DA spokesperson for economic development in Gauteng, Janet Semple. The reduction in the corporate tax rate for manufacturers would be conditional on re-investment in capacity to expand production, skills training and corporate social investment. Sector-specific manufacturing incentives would also be granted based on the ability of the manufacturer to improve production efficiencies, lower costs and create new jobs.
In terms of the DA proposals, lo...
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