The business community, represented by BUSA and CHAMSA, expressed the view that an expectation is created that since the 1% reduction in the CIT rate last year, government will have adopted a gradual approach of reducing the rate. They argue that to encourage investment the CIT rate should be internationally competitive. The decisions that informed the investor is not only the CIT rate per se, but whether there is an efficient tax administration system that is predictable and reliable. The current tax system in South Africa is not an impediment to investment and resource allocation should be based purely on commercial and not tax decisions.