adminMicro, small and medium enterprises (MSMEs) are set to receive tax incentives and funding to formalise their operations, according to the Second National Micro, Small and Medium Enterprises Policy Framework (2014-2018). In terms of the policy, which is already being implemented, players in the sector will enjoy a tax break after being formalised.
Government will, in addition, facilitate bank loan guarantee schemes to capitalise them.
This particular initiative will mainly benefit those without collateral. In turn, financial institutions that support the sector will receive undisclosed incentives.
The policy advocates tax relief and breaks for companies that subcontract MSMEs.
It also recommends widening the tax base as well as a flat rate tax or tax band system for micro and small enterprises.
Online Reporter