allAfrica.com: South Africa: Minister Welcomes Proposals for Revenue Laws Amendment Bill (Page 1 of 1)
Cape Town
The Minister of Housing Lindiwe Sisulu has welcomed the proposed tax incentives for employers who release affordable and low-cost housing to their workers as per the Revenue Laws Amendment Bill.
The Revenue Laws Amendment Bill was tabled by Finance Minister Trevor Manuel during his Mid-Term Budget Policy Statement in Parliament.
Finance Minister Trevor Manuel tabled the Revenue Laws Amendment Bill and the Revenue Laws Second Amendment Bill, which gives effect to the revenue proposals announced in the budget in February.
The Bill allows for certain sections of the Transfer Duty Act of 1949 to be amended.
In a statement, the minister said she welcomed the proposals.
According to the proposals, an employer would qualify for an annual write-off if a property is released for sale to an employee, who obtains an interest-free loan from the company.
In addition, the already existing tax incentives applicable to an employer's rental units are updated. These tax incentive proposals peg property values at R200 000 for houses (excluding land and bulk infrastructure) and R250 000 for flats.
The proposed tax incentives, particularly on the sale of affordable and low-cost housing to employees, represents a potentially exciting new avenue in making housing accessible to more and more South Africans, the minister said.
It dovetails other initiatives by Housing such as the R42-billion rand commitment from the banking sector to secure mortgages in the affordable housing market and the facilitation of other innovative access to housing finance through, for example, the National Housing Finance Corporation
A very good example of changing the way that houses can be funded - Thank you Minister of Housing Lindiwe Sisulu and Finance Minister Trevor Manuel from moladi