THURSDAY 12.00NOON
The trade and industry department yesterday announced the early termination of the controversial General Export Incentive Scheme due to budgetary constraints. The scheme will cease on July 11
The scheme was introduced in 1990 to offer financial incentives to local manufacturers to increase exports after years of apartheid isolation. Payouts in terms of the scheme grew rapidly to the stage where they took up the bulk of the department’s budget but, being a direct subsidy to exporters, it fell foul of the General Agreement on Tariffs and Trade.
The scheme has been gradually scaled down since 1994 and was to have been completely phased out by the end of this year.