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Thread: Budget Speech Highlights

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    Budget Speech Highlights

    Here is a summary of the budget speech that you might find helpful:


    Government collected 10 billion rand over budget.

    Government Spending is now 1,1 trillion rand(the highest it is ever been, besides that the goverment always overspends and we still have to repay R90 billion oustanding amount for services provided to the government). A huge chunk is budgeted for social services where we also have 16 million people relying on social grants. The aim is to make the rich pay even more or in other words to support the nation and get poorer, obviusly all social grants, rdp houses, low cost housing rebates and so on is covered by us the tax payer.


    Tax

    Medical Aid Credits R245 for first two members and 154 per dependent there after.

    Dividends tax is implemented at 15% in personal capacity (it was tax free until now)

    Retirement Annuity changes to be implemented in 2014

    Proposal for a tax exempt investments of R30,000 per annum up to max of R500,000 in a lifetime

    Capital Gains Tax Personal inclusion rate at 33% (increase in initial allowance), Trust inclusion rate increased to 66,6% (increased from 25% personal and 50% trust)

    Small business tax reduced from 10% to 7 %, only have to file twice a year (those business under R350,000)

    Deduction of debt interest to be changed

    Fuel levy and RAF levy increase by R 0,28c (we protested against toll fees, they always have a way to implement stuff like that, someone has to pay back for this expenditure, despite the government working for us we end up with the loans they take)

    Real tax savings for those earning under approx R250,000

    Spirits and cigarettes duty up by 20%
    Beer 10%
    Wine 8%


    Toll Road

    Government is to subsidies a large portion of SANRAL debt. *Results in decrease of toll fee from R0,60c to R 0,30c. *The toll fee is capped at a maximum of R550-00 per month.

    Time of day travel saving of 20% (e.g. between 10:00 and 15:00)

    *

    Financial Sector

    Financial Sector Code Gazetted and up for public discussion

    Scrutiny of Tax Practitioners and their business practices.
    ---There is no traffic at the extra mile---

  2. Thank given for this post:

    Blurock (23-Feb-12), BusNavig8 (01-Mar-12), Mark Atkinson (23-Feb-12), Singhms (01-Mar-12)

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    Silver Member Petrichor's Avatar
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    In general I am an optimist, but somehow I have this uneasy feeling about how long the "haves" can sustain supporting the "have nots" and the ever increasing burden being bestowed on us, the few tax payers.

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    Gold Member Mark Atkinson's Avatar
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    Thanks for the summary. Unfortunately I missed the budget speech.

    Could you just clarify "Real tax savings for persons earning under R250000"?

    I don't remember ever hearing the term "real tax savings" which is probably weird considering I'm studying honours year tax.
    "The way to gain a good reputation, is to endeavor to be what you desire to appear." - Socrates
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    Email problem BusNavig8's Avatar
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    Bad Bad News for Individuals

    Big Debate surrounding Medical Aid Tax Credits. Budget Guide says R230 for first two dependants and R154 thereafter, SARS issued a letter to employers in January stating that it was to be R216 and R144.
    Also this is going to be treated as a rebate and not a tax free cap which means a change in take home pay, but due to the fact that it is treated as a rebate the rate of tax is not affected and the rand value is subtracted from the actual tax due and payable so the full benefit is realised instead of the scale of 18-40% depending on your marginal rates of tax.

    Travel Allowances - Fuel and Maintenance Deemed costs have been taken out of the act for those who have maintenance plans and company garage cards - really bad news

    On a car valued at say R200K you are losing R126.5c per business Km

    In my opinion not much real tax saving for individuals really overall no matter how glossy a picture you paint.

    But Subsistence is a place you can score big time if the nature of your occupation allows for it. - its deemed!!!

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    Wow... I never said it's a nice picture. I just said that lower income earners will take home little bit more
    ---There is no traffic at the extra mile---

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    Email problem BusNavig8's Avatar
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    No man! You will have to get to know me and my passions! It's that! Pravin guy I was referring to!!!

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by BusNavig8 View Post
    It's that! Pravin guy I was referring to!!!
    The guy that dissed the tax practioners in his budget speech.

    ...and then the lackies reckon SAIT's response via the media was not constructive engagement on the issue
    The trouble with opportunity is it normally comes dressed up as work.

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