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South Africa is under increasing pressure to mitigate the effects of the coronavirus on the economy.
FILE: President Cyril Ramaphosa. Image: GCIS
JOHANNESBURG – President Cyril Ramaphosa announced radical measures Tuesday night in response to the anguish the national blockade was exerting on already impoverished communities, including an increase in social subsidies as well as an income subsidy for the unemployed.
South Africa is under increasing pressure to mitigate the effects of the coronavirus on the economy.
• Complete speech: Ramaphosa announces economic and social response to COVID-19
Those who can work from home during the confinement are doing so, but there are millions of citizens who cannot and are fighting against the growing uncertainty and anxiety about their future.
Since its implementation four weeks ago, the blockade has wreaked havoc on the economy and the effects have been largely felt by South Africa’s already vulnerable communities.
The government has been inundated with desperate pleas for food packages and any available help from people struggling to make ends meet.
The situation has become desperate.
“Poverty and food insecurity have dramatically deepened over the course of a few weeks,” said Ramaphosa.
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The president announced the government’s plan to soften the blow.
“This means that recipients of child support subsidies will receive an additional R300 in May and from June to October they will receive an additional R500 each month. All other grant recipients will receive an additional R250 per month for the next six months, “said Ramaphosa.
The government will also pay R350 over the next six months to unemployed people who do not receive any form of social subsidy or FIU payment.
The South African Social Security Agency (Sassa) would deploy food assistance through coupons and cash transfers.
R70 BILLION TAXES
At the same time, the government announced new tax measures that will provide R70 billion in cash flow relief or direct payments to companies and individuals.
Ramaphosa said the government had introduced a four-month tax exemption for business, skills, development and fundraising contributions.
“In addition to existing tax relief measures, we will also feature a four-month holiday for business skills development fundraising contributions, quick VAT refunds, and a three-month delay for filing and first payment of the carbon, “said the president. said.
Ramaphosa said that to help companies, the amount of the tax deferral was increased to R100 million a year.
“Businesses with a turnover of more than R100 million a year can request SARS directly on a case-by-case basis for deferrals of their tax payments.
“There will be no late payment penalties if they can show that they have been adversely affected in this period,” he said.
The president also said that taxpayers who donated to the Solidarity Fund could claim up to 10% as a deduction from their taxable income.
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