DA's Plan for Growth and Jobs - Democratic Alliance

shareholders, and any employee already participating in a share scheme in that company.The bonus would be partially tax-free, in a ratio that is linked to growth in an appropriateshare index over the five-year period.Amend BBBEE Scorecard to encourage new entrantsIncrease recognition for the participation of black new entrants in ownership equityprogrammes by awarding additional points according to the Broad-Black EconomicEmpowerment (BBBEE) scorecard for equity deals that benefit individuals who have notpreviously held ownership in other entities with a total cumulative value of more than R20 000 (the current scorecard only awards two bonus points in support of new entrants).This amendment will promote broad-based participation in equity transactions, and helpreduce the incentive to further empower already wealthy South Africans. In addition, a capwill be introduced that will place a limit on the monetary value for individuals and companiesparticipating in BBBEE deals. This will not prevent black entrepreneurs from investmentopportunities, but rather it will determine the extent to which their participation will bedeemed to contribute to broad-based empowerment.Amend BBBEE Scorecard to expand opportunitiesIncrease the weighting of the socio-economic development component of the Broad-BasedBlack Economic Empowerment scorecard so that greater recognition is given to expandingopportunities to more people. This will encompass two amendments to the scorecard: (i)increased recognition for new job creation and (ii) merging the black management controland employment equity components to create a focused measure of black managerialparticipation and development. Regarding new job creation, at present only 5 out of the 100points on the scorecard for generic enterprises are allocated for this purpose. Additionalpoints will therefore be awarded on the basis of proportional annual increases in jobopportunities offered by the entity. This will encourage the meaningful integration of valueaddingblack professionals into core decision-making and thereby enhance businessknowledge and skills development through a process of ‘learning by doing’.Reduce the cost of BBBEE complianceReduce the cost associated with complying with BBBEE regulations for Qualifying SmallEnterprises can by introducing biennial BBBEE audits which produce scorecards that will bevalid for 24 months. This would also allow businesses to implement empowermentprogrammes with slightly longer timeframes.Reduce time limits on the sale of state-subsidised housingAmend Section 10 of the Housing Act, Act 107 of 1997, which concerns restrictions on thevoluntary sale of state-subsidised housing. The current probationary period of 8 years will bereduced to 2, and an additional restriction will be added to prevent recipients of statesubsidisedhousing who have successfully sold their property from reapplying.Abolish duties on first-time land transfersAbolish all transfer duties on land transfers for all first time, owner-occupied residentialpurchases of under R2m, as well as for purchases by over 65-year-olds. This aims to makeit easier for people to enter the property market who would otherwise find it difficult to do so,namely, young professionals and elderly people with limited incomes.51 | P a g e