Budget Speech Highlights

[Nickolai Naydenov]

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.