BusinessLive reports that the Treasury has accepted the plea by business to scrap the proposed R20m cap on annual claims per employer under the employment tax incentive (ETI), which aims to promote youth employment.  

The Treasury has proposed to extend the life of the incentive for two years after it expires at year’s end, but with a cap on claims.  Business Unity SA (Busa) and other large employers argued during parliamentary hearings on the ETI that the cap would limit the effectiveness of the programme, which had been successful in enhancing youth employment.  Treasury director Christopher Axelson said on Tuesday that a "compelling" case had been made that the proposed cap would come at the cost of higher levels of employment.  He added that, should cost containment of the programme be required, the imposition of a cap would be reviewed.

• Read this report by Linda Ensor in full at BusinessLive

Get other news reports at the SA Labour News home page