- South Africa is making a concerted effort to rectify the load-shedding crisis, which has resulted in continuous power outages and blackouts in the country.
South Africa launches solar tax breaks as further measures to ensure the stability of electricity in the country despite the current challenge of load shedding.
The load-shedding crisis has plagued the country for a while now and the government has started working on addressing the issue.
The plan is to ameliorate energy security and reduce the country’s dependence on fossil fuels.
During his recent State of the Nation Address, President Cyril Ramaphosa announced that measures such as tax breaks and adjustments to the “bounceback” loan scheme would be used by South Africa’s National Treasury to enhance the distribution of solar energy.
According to him, the measures would help to establish their generation among private households and businesses.
Finance Minister, Enoch Godongwana is expected to denote how households and businesses can benefit from a tax incentive for rooftop solar, during the 2023 Budget on 22 February.
Check Out Other South African Updates
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- South Africa Lost Over 6,000 Taxpayers In 2022
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South Africa Launches Solar Tax Breaks: More on the Tax Breaks
The tax breaks as a post-Covid-19 scheme adjust the regime of the bounceback loan scheme to accommodate small businesses, helping them to enjoy tax breaks and also free up resources.
With the new scheme in place, Banks and financial institutions can borrow directly from the fund to facilitate the leasing of solar equipment to small businesses.
As a bigger picture, these regulations will allow South Africa to boost the availability of solar energy for businesses, with a much bigger picture of transitioning to renewable and clean energy.
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