Job creation: ‘speech vague on practical aspects’

2011-02-24 00:00

EUGENE du Plessis, tax director at PKF, expressed concern over the practical aspects of references to job creation.

Du Plessis said that while there was a lot of talk in the speech about the creation of jobs, it is not at all clear, from a tax perspective, how this is to be achieved. “For example, it is not clear how the incentives of R20 billion mentioned in the state of the nation address two weeks ago will actually work or who will qualify for these incentives,” he said.

“Generally, I feel let down.”

Pointing out that previous efforts to encourage skills development and job creation have not paid off to any significant degree, he said that he would have liked to see new thinking on the subject, more concrete steps outlined, and faster implementation being planned for.

“For example, the R5 billion youth employment subsidy will not take effect for nearly a year,” he said, “since it still has to go through a lengthy legislative process.

“Even then, it’s not certain that the subsidy will make much difference — the targeted employment growth mentioned by Gordhan of around two percent is unlikely to make a meaningful impact on the current unemployment crisis.”

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