In line with South African President Cyril Ramaphosa’s announcement of a R500bn ($26.6bn) coronavirus relief package, National Treasury has published further details on its second set of measures that aim to assist individuals and businesses through the pandemic.
The measures will help businesses focus on staying afloat and paying their employees and suppliers, the Treasury said.
“Assisting businesses now will ensure that our economy is in a better position to recover once the health crisis starts to subside,” it added.
“If businesses survive this testing time, the economy will be better placed to strive collectively towards economic growth that is inclusive (providing more opportunities for employment) and revenue-generating, so that we are able to work towards improving the state of our fiscus.”
It added that the measures are expected to provide around R70bn ($3.7bn) in support, either through reductions in taxes otherwise payable, or through deferrals of tax payments for tax compliant businesses.
Treasury said that the above measures will be given legal effect in terms of changes to the Draft Disaster Management Tax Relief Bill and the Draft Disaster Management Tax Relief Administration Bill.
Together with the commissioner for SARS, National Treasury will also monitor developments and the need for any further requirements to assist with COVID-19 relief efforts, it said.
SA’s Finance Minister Tito Mboweni is this afternoon expected to brief the media following president Ramaphosa’s annoucements of the R500bn ($26.6bn) economic package.
