ARTHUR GOLDSTUCK: Treasury misses big beat for start-ups
Ending Section 12J tax breaks, and for dubious reasons, was a big mistake in the 2021 budget
The National Treasury tends to be bastion of good governance, but sometimes it misses a beat. Last week, that beat was more like an entire missing bar in the music that is the start-up industry in SA.
The 2021 budget, unveiled last Wednesday, included the abolition of a tax break known as Section 12J, which offers a full tax rebate on investments made through venture capital (VC) companies to fund start-ups. However, the Budget Review issued by the Treasury underlined both a logical rationale for canning the incentive, and a short-sighted one...