Firms keen on youth tax break
Take-up of the employment tax incentive, which expires at the end of the year, has been far greater than the national Treasury expected. Nearly R6-billion was claimed over two years against the R2-billion that was estimated.A report on the achievements of the incentive, which was aimed at drawing young and inexperienced workers into the labour market, was presented by the Treasury yesterday to parliament's two finance committees."The number of companies claiming the incentive has been relatively high," Treasury deputy director-general Ismail Momoniat said."In the two months in the 2013-2014 tax year [when the incentive was introduced] 13999 firms lodged at least one claim. In 2014-2015, 32368 firms lodged at least one claim."This represents 15% of firms with eligible employees claiming the incentive."There are more manufacturing firms (7448) claiming than any other grouping," he said."Also notable is how many firms in financial services (7111) and trade (5532) are claiming the employment tax incentive."In 2014-2015, R2.6-billion was claimed for 686402 jobs supported by the incentive, whereas in 2015-2016, R3.6-billion was claimed...
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