Tuesday, January 20, 2015

Cosatu calls for the scrapping of tax incentive

Jaimie-faith Poonah
20 January 2015

The Congress of South African Trade Union says it rejects the notion that the Employment Tax Incentive has led 270, 000 people being employed. 

Cosatu Spokesperson Patrick Craven said many of the policies that need to resolve unemployment are already in place on paper but there are being rolled out far too slowly. 

The union has called for the scrapping of the ETI.

Craven said the new jobs that have been created would have been created anyway by the employers. The only difference is they would have received a very large tax reduction as a reward for doing what they would have done anyway.

He added that It confirms what exactly Cosatu is saying before their law was passed saying that this is never going to be a solution to the problem of youth unemployment.

“Now the country was counterproductive as it was diverting attention away from other real solutions. That is why we call for the scrapping of this tax incentive which is clearly not working.” Craven said.

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