Budget speech: High earners to be taxed more

Finance Minister, Pravin Gordhan delivers his budget speech for the 2017/18 financial year on 22 February. Photo: File

 

JOBURG – Finance Minister Pravin Gordhan delivered the annual budget speech on 22 February.

Delivering his speech, the minister said this year’s budget message is that we are once again at a crossroads.

“Tough choices have to be made to achieve the development outcomes the country seeks,” Gordhan said.

He highlighted that economic growth is slow, unemployment is far too high and many businesses and families are under stress.

“At the same time, we face immense transformation challenges. We must overcome the inequalities and divisions of our society. All South Africans must share in a more prosperous future.”

The minister said that government has a plan for a more inclusive, shared economy.

Getting on with his speech, Gordhan announced that the personal income tax rate has been increased to 45 per cent, and will be introduced for those with taxable incomes above R1.5 million.

Motorists will feel the pinch, even more, when filling up from April. The minister announced that there will be an increase of 30 cents per litre in the general fuel levy and an additional nine cents per litre in the road accident fund levy.

The minister announced that there will be an increase of 30 cents per litre in the general fuel levy and an additional nine cents per litre in the road accident fund levy.

On sin tax, he mentioned increases in the excise duties for alcohol and tobacco of between six per cent and 10 per cent.

Relief will be provided in the affordable housing market in that properties under R900 000 will not attract transfer duty tax. The annual allowance for tax-free savings will be increased to R33 000.

The annual allowance for tax-free savings will be increased to R33 000.

Further consultations are currently taking place on the tax on sugary beverages. Arising from these discussions, and working closely with the Department of Health, the proposed design has been revised to include both intrinsic and added sugars. The tax will be implemented later this year once details are finalised and the legislation is passed.

Arising from these discussions, and working closely with the Department of Health, the proposed design has been revised to include both intrinsic and added sugars. The tax will be implemented later this year once details are finalised and the legislation is passed.

The tax will be implemented later this year once details are finalised and the legislation is passed.

The proposed carbon tax and its date of implementation will be considered further in Parliament this year.

From 1 April, the old-age grant will increase by R90 to R1 600 for pensioners over the age of 60; and R1 620 for those over 75. The disability and care dependency grants also increase by R90 to R1 600 a month. Foster care grants increase by R30 to R920 a month. The child support grant increases by R20 to R380 a month.

The disability and care dependency grants also increase by R90 to R1 600 a month. Foster care grants increase by R30 to R920 a month. The child support grant increases by R20 to R380 a month.

Foster care grants increase by R30 to R920 a month. The child support grant increases by R20 to R380 a month.

Share your thoughts with us on the Minister’s speech by sending a WhatsApp message to 079 439 5345. 

  AUTHOR
Belinda Pheto

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