Businesses flouting regulations raise concerns

DURBAN - South Africa continues to debate the impact of undocumented migration on the economy.

Businesses owned by foreign nationals operate in both the formal and informal sectors.

The Durban Chamber of Commerce’s Udeen Singh said a clear distinction is needed between compliant enterprises that support jobs and pay tax and those operating outside regulatory frameworks.

“We differentiate between compliant and non-compliant activity. If you look at the formal sector, there are multinationals that are registered, there are migrant-owned businesses, they pay taxes, they employ locals, they comply with the labour laws, they’re involved in social activities. 

“It's vital for investment inflows, skills transfer, economic growth. Our concern is when people operate outside this. Operating where you don't pay tax, there's no compliance. Those are some things that we look at from the chamber side.  And we will have to look at it further,” Singh said.

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