Adjusted Alert Level 3 a welcome lifeline for businesses in the Western Cape
26 July 2021
We welcome the announcement by President Cyril Ramaphosa last night that the whole of South Africa will be moving to Adjusted Alert Level 3 with immediate effect, which includes the easing of restrictions on the economy which will be a lifeline for many businesses in the Western Cape.
In particular, the relaxation of the curfew to run from 22:00 until 04:00, the relaxation of travel for leisure, and the relaxation
We also welcome the announcements of additional financial support measures, some of which we have previously called for, and which will provide much-needed support to the recovery of the economy and provide relief to the poor and those who are vulnerable.
For instance, the deferral of payment of excise taxes by the alcohol sector for a period of three months, the deferral of payment of PAYE taxes for a period of three months will provide businesses with additional cash flow, with an automatic deferral of 35 per cent of PAYE liabilities for employers with revenue below R100 million. Further, the expansion of the Employment Tax Incentive for a period of four months to include any employee earning below R6 500, with an increase in the incentive amount by up to R750 per month will ease the burden on businesses as they seek to recover.