South Africa’s 2017 Budget: Crossroads and tough choices

 


Finance Minister Pravin Gordhan delivered a hard-hitting message to all South Africans in his 2017 budget speech, warning of tough financial times ahead.

In a nutshell: the rich are being taxed more, our sins are costing us more, and becoming a homeowner will cost you less. Let’s have a look at the announcements that caused such a stir.

The announcements that had many people smiling…

  • The tax-free threshold has been raised, from R75 000 to R75 750.
  • Properties sold for less than R900 000 will not pay estate duties.
  • Allowance for tax-free savings accounts increased to R33 000 (previously R30 000).
  • An extra R5 billion will be awarded to higher education over the next three years.

The announcements that had many people frowning…

  • People earning more than R1.5 million p.a. will be taxed 45%.
  • People earning between R708,000 and R1.5 million p.a. will be taxed 41%.
  • Fuel taxes have increased by 39c per litre.
  • Negotiations will continue around the sugar tax (to be implemented later this year).
  • For the first time since 2010, tax revenue growth has not matched economic growth. 

Whether celebrating or drowning your sorrows, we will ALL be paying more for our sins:

  • Malt beer up by 12c per 340ml can
  • Unfortified wine up by 23c per 750ml
  • Fortified wine up by 26c per 750ml
  • Sparkling wine up by 70c per 750ml
  • Ciders and alcoholic fruit beverages up by 12c per 340ml can
  • Spirits up by R4.43 per 750ml bottle
  • Cigarettes up by R1.06 per packet of 20
  • Cigars up by R6.58 per 23g

 


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