South Africa’s 2016 Budget: The good, the bad and the ugly

Budget_March_2016


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?

The good

  • 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.

 The bad

  • 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.

 The sinful

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

South Africa Budget


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