Employment Tax Incentive. Social partners agreed that the ETI should be extended for 10 years with a review after 5 years with interim reporting. This should be communicated to the Standing Committee on Finance and its deliberations of the 2018 Taxation Laws Amendment Bill. It was agreed that in order for the ETI to work effectively, the following will need to be addressed. • South African Revenue Services administrative matters; • Skills development; • Advocacy and awareness campaign; • Review of the monetary value and eligibility income range, subject to the availability of funds, and • Explore overlap between government programmes. It was further agreed that the following will be considered in the next ETI review subject to budget constraints: • Amendment and eligibility age range for the ETI. It is proposed that the age range be increased to 18-35-year olds in line with other youth employment initiatives (such as YES provided for in the B-BBEE Codes). • A review of the R6000 cut off should be considered with a view to increasing it to R8000. • The needs of SMEs, their challenges with red tape and reporting, should be considered should any amendments to the system of reporting be proposed. The approach should be standardisation and simplification and to avoid adding complexity with the objective to increase SME participation in the ETI.
