The SAIT Business Tax Incentives and Grants Technical Work Group submitted comments on the Draft Taxation Laws Amendment Bill, 2024, specifically regarding the proposed section 12V incentive for investments in buildings, machinery, and equipment used in producing electric and hydrogen-powered vehicles. While the group welcomed the incentive’s design and lower qualification threshold, they highlighted that original equipment manufacturers (OEMs) and component manufacturers, who play a key role in the supply chain, may be excluded from the incentive despite needing significant investment to adapt their facilities. SAIT acknowledged the fiscal constraints of extending the 150% tax allowance to component manufacturers, who already benefit from cash grants through the Department of Trade, Industry and Competition, but requested clarity on whether these manufacturers may be included in the future or if additional criteria might apply to determine eligibility.
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