The DA welcomes the Minister of Finance’s decision to increase the Value Added Tax threshold in the 2026/27 Budget, as well as adjust other tax provisions to make the life of small businesses easier. We have fought long and hard to make taxes on entrepreneurs lower and less difficult to comply with, and will continue to push for further simplification.
But taxes are not the only roadblock to small businesses fulfilling their role of growing the economy and providing jobs. The Minister of Small Business Development continues to throw red tape obstacles in the way of small businesses. Just as small businesses get some relief on the tax front, Minister Ndabeni-Abrahams wants to double the paperwork they have to fill out through her draft Business Licensing Bill. The DA is clear: entrepreneurs can’t create jobs while they wait in line for yet another permit from the municipality.
The best thing she can do for small businesses is simple: get out of their way. We do not need yet more licences and paperwork on top of the existing requirements. We will not support a bill that increases red tape on small business, like the current draft does. The final Bill must make the lives of small business owners easier, not harder, and we will use our votes in Parliament to make sure that it does.
Small businesses also need a voice for their interests. After DA pressure on the Chair, the Committee on Small Business Development will reconsider the appointment report for the Small Business Ombud in March. The DA successfully opposed the previous report due to the invalid and irregular process followed. A new, transparently-run process must be held to recommend an independent Ombud who will fight for small business’s rights to proper treatment, including timely payment of their invoices.
Small businesses are the lifeblood of the South African economy. There is finally some light at the end of the tunnel for our entrepreneurs, informal traders, and small business owners. The DA will continue to fight for them, wherever we can.