‘Keep us in the loop’ – Informal traders alliance tell Mboweni

The South African Informal Traders Alliance (Saita) is more worried than pleased about Minister Tito Mboweni’s budget speech.

Rosheda Muller, Saita president, expressed her dissatisfaction about the money allocated to the department of small business development.

“Saita needs to be fully informed as to how the money or the budget will be spent so we can ensure it reaches the informal traders on the ground and is not used in consultancies and administration, etc – as has happened in the past.

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“We will be having meetings countrywide to raise the question of how we will access the funds directly and how we will be able to get accountability from the department of small business development.”

Muller said the tax changes were unnecessary, especially for tobacco products.

“It must be understood tobacco is one of the fast-moving products, like fruits, vegetables, dairy products, chips, sweets, cold drinks.

“An increase in these widens the opportunity for the illicit industry and government doesn’t receive a cent from the billions which get lost and could be added to the fiscus to empower informal trade.”

The alliance was calling for the urgent ratification of the World Health Organisation’s (WHO) Anti-Illicit Trade Protocol, which South Africa became a signatory to in 2013.

READ MORE: Budget 2021: Good news on income tax, bad news on booze, smokes and fuel

The protocol recommends various measures to combat illicit trade in tobacco products.

Garth Rossiter, chief risk officer at Small and medium-sized enterprises (SME) business enabler Lulalend, said the government chose not to introduce the tax measures initially proposed in the October Medium-Term Budget Policy Statement.

“This is positive as it shows the government is aware of the difficulties SME owners are facing and are willing to make changes to their plans.”

Rossiter said the minister had a tough job but “has done the best he could with limited scope to move”.

“The lack of tax increases is positive for small businesses and I do understand they have to spend money on Covid-19 resources, which is great – but I do wonder what it means for the debt burden to come,” Rossiter said.

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