Ina Opperman
Business Journalist
2 minute read
26 Jul 2021
5:56 pm

Cyril’s tax relief will save businesses, but leave government broke

Ina Opperman

The tax relief is much needed to help businesses get back on their feet, but economists warn that cuts will have to be made elsewhere.

Picture: iStock

The tax relief President Cyril Ramaphosa announced on Sunday night will help businesses to start trading again and create much-needed jobs, but government will be left broke and will be forced to cut other expenditure, such as education. Ramaphosa said government will defer payment of pay as you earn (PAYE) taxes for three months, to provide additional cash flow for businesses, with an automatic deferral of 35 percent of PAYE liabilities for employers with revenue of below R100 million. The Employment Tax Incentive (ETI), in place since 2014, will also be expanded for a period of four months by up...