Despite political outcry, Parliament led by ANC has finally okayed youth wage Subsidy, Bill or the Employment Tax Incentive.
Cosatu vehemently objected the subsidy, claiming that it would egg on employers to dismiss experienced workers to replace younger ones to obtain the tax concession. The Economic Freedom Fighters’ (EFF) leader, Julius Malema also bitterly opposed youth wage subsidy. The Democratic Alliance (DA) also disliked it due some of its structural pitfalls.
Parliament accepted the Employment Tax Incentive Bill as the Treasury won its three-year battle with Cosatu over a youth wage subsidy.
All opposition parties said “we have to pave the bill way in greater national interest but it led damaging job-seekers and inflicting the National Education Development and Labour Council (Nedlac).”
Democratic Alliance finance spokesperson Tim Harris told The South Africa News that the cost of the fight in the ruling alliance was clear in the R1.3-billion tax break the wage subsidy would allow employers, down from R5-billion when Finance Minister Pravin Gordhan initiated it.
The National Union of Metalworkers of South Africa has dubbed bill it as ANC’s neoliberal policy failure and pledged to stir strikes and demonstration if were enforced.
Congress of the People spokesperson Nic Koornhof asserted the adoption of Bill signaled that Cosatu’s sway within the tripartite alliance ebbed.
Finance Deputy Minister Nhlanhla denied Harris and Greyling’s contention that the DA had not only defeated the national government by unveiling a similar subsidy in the Western Cape, but cared misery of the youth.
Nene argued that as per figures Limpopo had brought down unemployment by 4.5% in comparison to a 2% decline quantified in the DA-governed Western Cape. The government is all set to unwrap the tax incentive in January, 2014.