Dear Editor
The DA is deeply concerned by Minister Tau’s new proposal of a 3% BEE levy on unlisted businesses. While this proposal may be voluntary in name, its connection to company BEE status means it is unlikely to be voluntary in nature.
The DA will oppose any attempts to impose further costs and BEE compliance burdens on South African businesses, which must be freed from red tape so that they can create the jobs we so desperately need. This new 3% BEE levy would cripple job-creation, and kill off many small businesses, which we cannot allow. The DA strongly condemns it.
It is already clear that the Department of Trade, Industry and Competition’s new proposals for the Transformation Fund do not have buy-in from business. The indefinite postponement of today’s Presidential Transformation presentation of concept is likely to stem from a boycott by organised business, who rightly oppose being made to cough up R40 billion for yet another ANC scheme.
The proposed 3% levy appears to be the DTIC’s last-ditch attempt to rescue its treasured project, which was still born a year ago and should remain buried.
Taking billions from businesses every year to funnel into a single fund that the state ultimately controls is a recipe for disaster. We need only look at the track record of corruption and maladministration at the PIC and scores of other state funders to see why. The politically connected elite will benefit, and disadvantaged South Africans will see none of the money.
The existing enterprise and supplier development initiatives of South African firms support thousands of smaller businesses. Disrupting this ecosystem so the state can decide who is worthy of support is a huge step backwards.
The DA is in government to focus on true empowerment: we must create new jobs, businesses, and opportunities, which allow all disadvantaged South Africans, irrespective of race, to become entrepreneurs, grow their businesses, and be empowered by employment.
Regards
Toby Chance MP
DA Spokesperson on Trade, Industry & Competition