Finance Minister Pravin Gordhan
Photo by: Duane Daws
Preliminary data show claims totalling over R6-billion under the Employment Tax Incentive (ETI), introduced by the Employment Tax Incentive Act 26 of 2013, between its implementation on January 1, 2014, and March 31, Finance Minister Pravin Gordhan said.
Responding to Parliamentary questions by Democratic Alliance MP David Maynier regarding the outcomes to date of the ETI, Gordhan said there were R2.03-billion in claims during the 2014 calendar year and R3.43-billion of claims 2015, with R589-million in claims reported from January 1 to February 29, 2016.
“The estimated tax revenue forgone for the 2016 calendar year is around R4.1-billion [including the first two months of the year],” he said.
A comprehensive assessment and review of the ETI will be completed by September, providing more firm numbers on the impact of the ETI.
The incentive aims to stimulate the growth of youth employment by reducing the cost to employers of hiring qualifying youth.