23/03/2020
The nation-wide lockdown will be enacted in terms of the Disaster Management Act and will entail the following:
- From midnight on Thursday 26 March until midnight on Thursday 16 April, all South Africans will have to stay at home.
- The categories of people who will be exempted from this lockdown are the following: health workers in the public and private sectors, emergency personnel, those in security services – such as the police, traffic officers, military medical personnel, soldiers – and other persons necessary for our response to the pandemic. It will also include those involved in the production, distribution and supply of food and basic goods, essential banking services, the maintenance of power, water and telecommunications services, laboratory services, and the provision of medical and hygiene products. A full list of essential personnel will be published.
- Individuals will not be allowed to leave their homes except under strictly controlled circumstances, such as to seek medical care, buy food, medicine and other supplies or collect a social grant.
- Temporary shelters that meet the necessary hygiene standards will be identified for homeless people. Sites are also being identified for quarantine and self-isolation for people who cannot self-isolate at home.
- All shops and businesses will be closed, except for pharmacies, laboratories, banks, essential financial and payment services, including the JSE, supermarkets, petrol stations and health care providers. Companies that are essential to the production and transportation of food, basic goods and medical supplies will remain open. We will publish a full list of the categories of businesses that should remain open. Companies whose operations require continuous processes such as furnaces, underground mine operations will be required to make arrangements for care and maintenance to avoid damage to their continuous operations. Firms that are able to continue their operations remotely should do so.
- Provision will be made for essential transport services to continue, including transport for essential staff and for patients who need to be managed elsewhere.
COVID-19 LOCKDOWN 21 DAYS: 26 MARCH - 16 APRIL
Economic response
- Solidarity Fund: Set up to assist people and small businesses in need as cause of the virus. Anyone can contribute, especially private sector. Details are on the website
www.solidarityfund.co.za
- The supply of goods (food) and supply chains to remain intact. Therefore no need for panic buying or stockpiling
- Special employee wage relief: Temporary Employee Relief Scheme (TERS) that will enable companies to pay employees during this period and to avoid retrenchments
Tax and SARS update:
- Where needed government will utilize the UIF to assist with relief for people affected by the virus
- Tax Subsidy: Up to R500 per month for the next 4 months for private sector employees earning up to R6500 under the employees tax incentive
- Employment Tax Incentive: SARS will commit to accelerate payouts from twice a year to monthly to get cash into the hands of compliant employers
- Tax Compliant companies with a turnover of less than R50M will be allowed to delay 20% of their PAYE liabilities over the next 4 months. A portion of their provisional income tax payments over the next 6 months without penalties or interest.
- Government is exploring the possibility to reduce payments by companies and employees to the UIF and SDL fund
- The Department of Small Business has made over R500M available immediately to assist small and medium enterprises that are in distress through a simplified application process
- The Department of Tourism has made over R200M available to assist small medium enterprises in the tourism and hospitality sector who are under stress due to the travel restrictions
