Municipal Business Tax

[Pap_sak]

I am sure Vavi will have lots to say if it went through - although I don't agree with everything he has to say, I think he is quite a level headed bloke and this would impact on jobs especially for marginal businesses. We are actually quite lucky in SA compared to the UK regarding business rents/rates and terms.

Generally in the UK:

Leases are generally for a minimum of 5-10 years.
You pay rent every 3-6months instead of monthly
There is no 8-10% a year increase, you have a rent review every few years or so and rent can quite easily go up 30-50%
Business rate there are way high than residential - and imo are a joke (do they actually want jobs?)
The lease holder has to maintain the whole building at the owners say so, not just the inside as in SA
You need a couple of lawyers just to sign a lease.

Give me the SA way any day of the week....

[Ann Williams]

Government's latest little idea is to consider increasing business taxes in the 8 largest municipalities as a means of getting more towards the infrastructure spend that they are trying to raise....

[Dave A]

I've been wondering...

What would business be prepared to do as protest action against something that they really objected to?

Unions would go on strike and stage a protest march (at the very least). But I can't see business resorting to a lockout - or a protest march.

Any ideas?

[AndyD]

I suspect you've just answered any question on why a new tax would be aimed at businesses rather than personal income tax or VAT for example. Business, especially millions of small businesses have little lobbying power and even less liquid finances they could afford to throw at protesting so they're a soft target.

[deetee]

A question no-one seems to be raising, is: what about all the "informal trading sector" businesses in these affected areas, the taxis, the fruit & veg vendors on the pavements etc. etc., all the purely cash based business ventures with no taxation of ANY sort, how will the new tax be implemented for this sector??

I am (or rather was) in the process of setting up business, doing the whole registration & VAT etc. thing. Well this process has now come to a very sudden halt. I will now shift my Banking to My Back Pocket Inc. (not a registered financial services provider!!), and work from home!!

I think it is wise for many of the smaller business owners to strongly consider reverting to the age old "mom & pops" format of business, keep it small and keep it yours, and KEEP IT UNREGISTERED!!

Complacency is the death of civilization!!

[Blurock]

I've been wondering...

What would business be prepared to do as protest action against something that they really objected to?

Unions would go on strike and stage a protest march (at the very least). But I can't see business resorting to a lockout - or a protest march.

Any ideas?

Join your local Chamber of Commerce. Businesses should use forums and business bodies to lobby for their rights. Chambers also operate on a national basis and should use their collective powers to fight corruption and wasteful expenditure, assist in formulating Govt policies and the like.

Considering the nearly R400 million that will be spent on upgrading Zuma's residences and offices, the increasing billions of wasteful and unaccounted expenditure by the state, businesses and taxpayers are in for a very very hard time ahead.

Mr Moleketsi Mbeki has predicted that the Govt will run out of money by 2020 as it will no longer be able to sustain all the grants, free housing, free water, free electricity and other social benefits to its supporters. At the rate that Government is stealing, the proverbial s#!t will hit the fan by 2013.

[Dave A]

Join your local Chamber of Commerce. Businesses should use forums and business bodies to lobby for their rights. Chambers also operate on a national basis and should use their collective powers to fight corruption and wasteful expenditure, assist in formulating Govt policies and the like.

Except all this "abuse" has been happening while these structures are in place and lobbying

So what else can be done to be taken more seriously?
Because from what I'm seeing, lobbying isn't doing it.

[Blurock]

Maybe the chamber management and business leaders are too cosy with Government in order to promote their own interests and not the interests of the members. There seems to be a general attitude of "what's in it for me, and not what I can do for my country".