ATC131030: Report of the Standing Committee on Finance on the Employment Tax Incentive Bill [B46 - 2013] (National Assembly- section 77), dated 25 October 2013.

Report of the Standing Committee on Finance on the Employment Tax Incentive Bill [B46 - 2013] (National Assembly- section 77), dated 25 October 2013.

The Standing Committee on Finance, having considered and examined the Employment Tax Incentive Bill [B46 - 2013] (National Assembly – section 77), referred to it, and classified by the JTM as a Money Bill, reports that it has agreed to the Bill.

The Committee notes the incorrect reference to section 22(1) of the Refugees Act, 1998, in line 44 of page five of the Bill.

The Committee recommends to the Minister of Finance to propose technical corrections in terms of section 14 of the Money Bills Amendment Procedure and Related Matters Act (Act No. 9 of 2009).

The Committee further notes that clause 12 should be reviewed before the 1 January 2017 cessation date of the Bill, so as to determine the efficacy and possible extension of the Bill.

The committee further reports that the Democratic Alliance (DA) objected to clause 3 (c) (ii), as additional administrative burdens on employers may discourage take-up of the incentive; clause 4, as limiting the incentive to those who earn above a statutory minimum excludes those who are most vulnerable and limits the effectiveness of the incentive from achieving its very purpose; clause 6 (e), the DA does not believe the incentive should be limited to new employees only; clause 12, the DA does not agree that a sunset clause is acceptable; clause 14 (2), the entire Act should come into operation on 1 January 2014 and clause 14 (3), the DA requests the deletion of this subsection.

The Congress of the People (COPE) objected to clause 6 (e), clause 12, clause 14 (2) and clause 14 (3). COPE abstained from voting on clause 3 (c) (ii).

The African Christian Democratic Party (ACDP) objected to clause 6 (e), clause 12, clause 14 (2) and clause 14 (3). The ACDP abstained from voting on clause 3 (c) (ii).

Report to be considered