R1 billion for black empowerment

CAPE TOWN – South Africa’s Finance Ministry said yesterday that one billion rand would be devoted over the next fiscal year to black economic empowerment (BEE).

BEE is a cornerstone of the drive by the ruling African National Congress to transfer wealth to the black majority previously left out of the mainstream economy under nearly half a century of apartheid. “…the 2004 budget allocates one billion rand for this purpose (BEE) in 2004/05 and a total of six billion rand over the forthcoming (three-year) period,” the 2004 budget review said.”The funds set aside will be used…to finance medium-sized transactions where ownership is being broadened and value is being added,” it said.Finance Minister Trevor Manuel also pledged tax breaks to broaden the equity ownership of low income employees, most of whom are black.”An issuance of shares to low income employees at reduced or no cost (subject to a cap) will not be deemed as income for purposes of income tax if the shares are held for a prescribed period of time,” Manuel said.The cap on the amount, the prescribed period of time and maximum income bracket for low income employees have yet to be determined.”These changes will facilitate long-term ownership by workers, facilitating improvements in productivity and broad-based economic empowerment,” he said.- Nampa-Reuters”…the 2004 budget allocates one billion rand for this purpose (BEE) in 2004/05 and a total of six billion rand over the forthcoming (three-year) period,” the 2004 budget review said. “The funds set aside will be used…to finance medium-sized transactions where ownership is being broadened and value is being added,” it said. Finance Minister Trevor Manuel also pledged tax breaks to broaden the equity ownership of low income employees, most of whom are black. “An issuance of shares to low income employees at reduced or no cost (subject to a cap) will not be deemed as income for purposes of income tax if the shares are held for a prescribed period of time,” Manuel said. The cap on the amount, the prescribed period of time and maximum income bracket for low income employees have yet to be determined. “These changes will facilitate long-term ownership by workers, facilitating improvements in productivity and broad-based economic empowerment,” he said. – Nampa-Reuters