It came as quite a pleasant surprise when Minister Pravin Gordhan announced in his budget speech that income tax would not be increasing this year. But there’s always a flip side to every coin. So, what else was said on 24 February that will affect your pocket in the months to come?
- Personal income tax rates remain the same.
- No austerity measures.
- Tax relief for low and middle income earners.
- Social grants are being raised.
- Education will receive almost R842 billion in total.
- Money has been set aside for drought relief.
- Tax credits on medical scheme contributions have increased.
- Increased fuel levy (up by 30 cents per litre as of 6 April): 85 for petrol and R2.70 for diesel.
- Increases in capital gains tax and property transfer tax.
- A 7% increase in the tax on alcohol and tobacco.
- A new tyre levy will be introduced in October this year.
- Next year April will see the introduction of a tax on sugary soft drinks as well.
Beer 11c/340ml Ciders and alcoholic fruit beverages 11c/340ml
Fortified wine 27c/750ml Unfortified wine 18c/750ml
Spirits 394c/750ml Sparkling wine 59c/750ml
Cigarettes 82c/packet of 20 Cigarette tobacco 94c/50g
Pipe tobacco 27c/25g Cigars 432c/23g