Today being the 30th November is the deadline to raise any concerns with regard to the new Business Licensing Bill. Any pubic comment would have to be raised by Friday 28th as the deadline falls over the weekend when no government official would be working.
This new Business Licensing Bill introduced by the ANC government is what you would expect to see as this is targeted at the smaller non registered businesses from the informal sector. This new bill will basically create a registry for every business in South Africa.
This for many is another money gran as the payment to register the business annually is going to raise new revenue. The informal sector is roughly generating around R 1 Trillion which is roughly 15% of SA's GDP, but pays no taxes as these are the unemployed part of the population making their own income. Roughly this sector accounts for 20% of all jobs in SA even if those earning do not declare their earnings. The R350 grant for those unemployed which is $20 and not worth very much is why many are trying to generate their own income. A large percentage of the population has a rough enough existence and now have this thrown at them.
services to this sector and mentioned a few years ago how big this sector was. One can see why the government wants to tap into this sector as there is big revenue to gain but in the same breath they will alienate any support they still have. I think this highlights more than anything else they have run out of revenue increasing ideas and they know they are in trouble. This is more about how much more they can steal before their time is up and not about regulating businesses. For many this is the same as stabbing their people in the back and is seen as a betrayal.
Red tape is the last these small businesses need as now the local municipalities can decide who will have a license or not. The problem with this is the power now lies with the local municipalities and the corruption with these licenses will be off the scale. Foreigners will now have to register their businesses which they cannot do due to being illegals with no papers which could be part of the bigger plan. Businesses who will offer bribes will no doubt get competitors blocked and from this poverty will only increase.
From where I am sitting there is no good coming from this New Business Deal with the Center for Development and Enterprise (CDE) saying this is anti business and anti growth. Charging struggling businesses for a license will hinder their growth prospects and will see job losses. These job losses do not form part of the official unemployment stats as this whole sector does not really exist, but does.
One would like to think that the government would be promoting business and job creation yet the truth is many in charge are uneducated and they do not know how to govern. Self benefit comes first and second and the people they are leading and so called looking out for do not count.
Those businesses operating without a license can be fined and have their stock confiscated which will happen with businesses who have been registered reporting competitors who have not.