header-10-500.jpg

Bay’s proposed tax and rates incentives should also be extended to SMME sector

2020-08-05

divider

The Nelson Mandela Bay Business Chamber welcomes the Municipality’s proposal to introduce new tax and rates incentives for businesses as part of the City’s economic recovery plan.

Bay’s proposed tax and rates incentives should also be extended to SMME sector

The Nelson Mandela Bay Business Chamber welcomes the Municipality’s proposal to introduce new tax and rates incentives for businesses as part of the City’s economic recovery plan.

This comes at a time when many businesses have been severely impacted by the effects of the COVID-19 pandemic and would therefore benefit the workforce and business community of Nelson Mandela Bay immensely.

However, we are concerned that these tax and rates incentives have only been proposed for big businesses and not extended to relatively smaller enterprises. By their very nature, SMMEs generally do not have deep financial reserves to shield themselves from economic turbulence.

The formal SMME sector plays a significant role in the City’s economy in terms of job creation and spurring economy-wide efficiency. As such, the proposed strategic intervention, especially with tax and rates, should include small- and medium-sized businesses to ensure their long-term sustainability. They are already burdened with various structural impediments such as lack of skills, access to finance and key markets, which prevent them from realising their full potential.

While attracting and retaining big business remains a key cog in the Metro’s economic development plan, one also needs to recognise that most SMMEs form part of the supply value chain in the local economy. Their survival becomes critical in the implementation of the remedial action to ensure they are not left behind without the necessary support.

In the current economic environment, it becomes even more urgent for these proposals to be implemented to salvage the situation. Realistically, the debt-relief programme consisting of reducing rates could be a quick win if its implementation is rolled out immediately. Not only will it save thousands of jobs in the Metro, but will also set the wheels in motion for the broader recovery plan to be implemented.

As the Business Chamber, we, therefore, appeal to the City’s leadership to consider expediting this process to save what is left of the economy. This decision should begin to demonstrate their steadfastness in taking the Metro forward.

 

Nomkhita Mona

Chief Executive Officer

 

 

FOLLOW US ON
SOCIAL MEDIA

THE NELSON MANDELA BAY BUSINESS CHAMBER LIKES TO KEEP IT INTERESTING

divider