South Africa’s economic highlights
South Africa’s 2015/16 National Budget is R1.243 trillion. Treasury will increase this by 2.1% in real terms for the next three years in an attempt to consolidate SA’s fiscal position.
South Africa’s Finance Minister Nhlanhla Nene has reduced the main non-interest expenditure ceiling by R25bn for the next two years.
The national budget deficit now sits at 3.9% of GDP, but is seen narrowing to 2.5% by the 2017/18 financial year.
Personal income taxes and the fuel levy has been raised in an effort to bring in an extra R16.8bn this financial year.
Taxes and You
Individuals earning more than R181 900 per annum will see a 1% tax increase and an increase in medical tax credits.
Individuals earning less than R500 000 p.a. will benefit from tax relief.
The general fuel levy will increase by 30.5c/litre of petrol on 1 April 2015. At the same time, the Road Accident Fund will increase by 50c/litre of petrol. Motorists will pay 80.5c/litre petrol more from 1 April 2015.
Transfer duty on properties costing less than R75 000 have been scrapped – small concession to the middle income consumer.
However, transfer duty on properties costing more than R3mn will increase and will be R145 000 + 11% on the value above R3mn from 1 April 2015.
Beer, ciders and alcoholic fruit drinks will cost 7c/340ml can more.
Spirits will cost R3.77/750ml bottle extra.
Smokers will suffer 82c extra tax on each box of 20 cigarettes.
No changes to corporate taxes were presented, apart from concessions for micro enterprises which will not need to pay tax if annual revenue is less than R335 000.