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