Outrage As Government Plans 3% BEE Tax for R100 Billion Transformation Fund

• The Minister of Trade, Industry and Competition, Parks Tau, recently announced a R100 billion transformation fund
• The fund is expected to boost Small, Micro and Medium Enterprises (SMMEs) and foster transformation in the country's economic sector
• South Africans vehemently opposed it and warned that it could be subject to vast looting by government officials

Tebogo Mokwena, a Briefly News current affairs journalist in Johannesburg, South Africa, has covered policy changes, cabinet reshuffles, the State of the Nation Address, Parliament and Parliamentary committees, politician-related news and elections at Daily Sun and Vutivi Business News for over seven years.

JOHANNESBURG — The government's announcement that it would establish an R100 billion transformation fund to assist Small, Micro and Medium Enterprises (SMMEs) was met with resistance from the public.

Where will the R100 billion come from?

Trade, Industry and Competition Minister Parks Tau revealed in a recent Question-and-Answer session in Parliament that companies would be taxed 3% of their annual net profit after tax toward developing black-owned businesses. A Transformation Fund will be created where the contributions will be channelled. Multinational corporations will make cash contributions worth 25% of the value of their local operations.

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• President Cyril Ramaphosa signed the National Health Insurance Act into law weeks before the 2024 general elections
• He also signed the Basic Education Amendment Laws Act into law despite opposition from other political parties
• Recently, he invited the public to comment on an amendment to the Immigration Act of South Africa

Netizens furiously slam ANC

Netizens commenting on @DailyInvestorSA's tweet vehemently opposed the fund.

Abahambe Abdul said:

"Comrades don't get tired of scamming."

Kwena Molekwa said:

"They are running their Ponzi scheme even after the DTIC failed its mandate."

Not a Peace Officer said:

"As usual, their plan is to get funds to loot like they did with the COVID-19 funds."

Granny is always right said:

"They only want to "transform" their own bank accounts. Again, and more than they already do."

Bronx X said:

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"It boggles the mind how these fools think."

SA government sets R500 million aside for SMMEs

In a related article, Briefly News reported that the government set half a billion aside to help SMMEs. The Departments of Trade, Industry and Competition and Small Business Development will manage the funds.

The DTIC's deputy director general, Susan Mangole, said the funds will be disbursed as loans and grants. South Africans suspected that government officials would loot them.

Source: Briefly News