Ten firms queue up as SPEDU tax deal goes to Parly

The special tax arrangement is part of a range of initiatives driven by government to boost economic activity in the Selebi-Phikwe region, which was dealt an existential blow by the October 2016 closure of BCL Mine. Other incentives include zero customs duty on imported raw materials as well as fast-tracked land leases, licences, permits and utilities.

According to a draft of the tax order, which was tabled before Parliament on Wednesday, the five percent tax rate would only apply to companies engaged in manufacturing, tourism and agriculture. After the first five years of enjoying the discounted rate, businesses will then be required to pay 10%. The order also states that the special rate will only apply to businesses in Selebi-Phikwe, Bobonong, Mmadinare-Sefhophe, Lerala-Maunatlala and neighbouring villages, farms and cattle posts.