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South Africa To Launch New Enterprise Investment Programme,
by Robert Lee, Tax-News.com, London
Tuesday, July 01, 2008
The South African Department of Trade and Industry (DTI) has announced that
it will launch the government's new Enterprise Investment Programme (EIP) in
July.
The new EIP, announced by Minister of Trade and Industry Mandisi Mpahlwa in
his speech on during the budget vote on 28th May, is an incentive grant which
comprises of the Manufacturing Investment Programme (MIP) and Tourism Support
Programme (TSP). The incentive will be accessible to both local and foreign
owned entities wishing to locate their projects in South Africa.
The objective of the MIP is to stimulate investment within manufacturing. Qualifying
investment costs would comprise machinery, equipment, land and buildings and
commercial vehicles.
The objective of TSP is to stimulate employment and encourage geographic spread
of tourism investment. The qualifying activities will be broadened beyond traditional
accommodation services.
In addition, the DTI is working with the National Treasury to secure about
ZAR5bn (USD627mn) in tax incentives. It is expected that this tax package will
be finalised by December 2008, Mpahlwa told parliament in the speech.
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