SA #Budget2018: A tax on the wealthy, and smartphones


Op-Ed: Why the COVID-19 pandemic is no time for fiscal distancing

"Extraordinary times call for extraordinary measures. As such, it can no longer be business as usual".- Akinwumi Adesina, President of the African Development Bank

Can Cruise Lines Recover From Coronavirus?

The COVID-19 outbreak has laid waste to entire sectors of the global economy, but none faster than the cruise business. The pandemic has basically shut it down with the three largest publicly traded cruise companies suspending some, if not all, of th

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...

(PRETORIA) South Africa’s Budget 2018 speech and review was an uplifting read unlike Finance Minister Malusi Gigaba’s 2017 Medium Term Budget Policy Statement (MTBPS), which led South Africa down a spiral characterised by slow economic growth, recession, ratings downgrades, and heightened concerns regarding the governance and sustainability of key state-owned companies.


Even Gigaba’s Budget lockup press conference on Wednesday was more upbeat than last year’s MTBPS’s. He had the confidence and swagger of man who believes he has averted further downgrades for South Africans. But for the wealthy and lovers of the finer things in life from smartphones to Gucci handbags – Budget 2018 makes for sombre reading.

If you’re wealthy or love the finer things in life this is how you’ll be impacted

  • VAT rate to increase from 14% to 15%. The wealthiest 30% of households contribute 85% of VAT revenue.
  • Products such as rye or low GI bread which are more expensive will not be zero-rated. This type of bread tends to be consumed by richer households.
  • There’ll will be no adjustments to the top four income tax brackets
  • Ad-valorem excise duty rate on luxury goods to increase from 7% to 9%.
  • Effective 1 April 2018, the maximum ad valorem excise duty for motor vehicles will increase from 25% to 30%.
  • Classification of cellular telephones will be updated to include “smartphones” to ensure they attract ad valorem excise duties.
  • Government will consult on a proposal to replace the flat rate for cellphones with a progressive rate structure based on the value of the phone.
  • From March 1 a higher estate duty tax rate of 25% for estates greater than R30mn will be introduced. To limit the staggering of donations to avoid the higher estate duty rate, any donations above R30mn in one tax year will also be taxed at 25%.


- Advertisement -
- Advertisement -


SA’s banks reveal how small businesses can apply for the R1bn Oppenheimer fund

Three of South Africa’s major banks have revealed to CNBC Africa how small businesses can apply for funding from the South Africa Future Trust. This is what they had to say.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

Applications open for Rupert family’s R1bn fund, here’s how to apply

As small businesses around South Africa feel the weight of the country’s 21 day lockdown and the COVID-19 pandemic, BUSINESS/PARTNERS has revealed...

How to protect your mental health amid the coronovirus pandemic

The coronovirus pandemic is causing high levels of anxiety all over the world. For some, coping with lockdowns hasn’t been easy and there are concerns social distancing and isolation could negatively impact mental health. Dr Linda Blokland, Acting Head of Department at the Student Counselling Unit at the University of Pretoria joins CNBC Africa for more.

Altron eyes London listing for Bytes UK

Altron plans to separate its UK assets from its African operations via a London listing. The technology group says the listing, still at planning stage will unlock value for its shareholders. Mteto Nyati, CEO Altron joins CNBC Africa for more.

Siemens donates R500, 000 towards fight against COVID-19 in South Africa

In a bid to help alleviate the impact of COVID-19 in South Africa, the Southern and Eastern African division of the multinational conglomerate, Siemens, has donated R500, 000 to the Solidarity Response Fund.
- Advertisement -

More Articles Like This

- Advertisement -