Pravin Gordhans budget speech in a nutshell..
The important bits you may want to know about #budget2017
- The first R900 000 of the value of property acquired from March 1 2017 will be taxed at zero percent. Before March 1 2017 the first R750 000 of the value of property was taxed at zero percent.
- The general fuel levy will increase by 30c/litre on April 5 2017. This will push the general fuel levy up to R3.15/litre of petrol and to R3.00/litre of diesel.
- The road accident levy will increase by 9c/litre of petrol and diesel on April 5 2017.
- Annual allowance for tax-free savings accounts will be increased to R33,000 from the current R30,000.
- Medical tax credit will be increased in line with inflation this year.
- Individuals earning above R1.5million per annum or R125,000 per month will now be taxed in a new bracket at 45%.
Sin taxes rise:
- Taxes on alcohol and tobacco are set to rise as follows:
- Beer 12c/340ml;
- Fortified wine 26c/750ml;
- Ciders and alcoholic fruit beverages 12c/340ml;
- Unfortified wine 23c/750ml;
- Sparkling wine 70c/750ml;
- Spirits 443c/750ml;
- Cigarettes 106c/packet of 20;
- Cigarette tobacco 119c/50g;
- Pipe tobacco 40c/25g; and
- Cigars 658c/23g.
Spending on social grants is set to rise.
The specific increases are:
- State old age grant from R1 505 to R 1 600 per month;
- State old age grant, over 75s from R1 525 to R1 620;
- War veterans grant from R1 525 to R 1 620;
- Disability grant from R1 505 to R 1 600;
- Foster care grant from R890 to R920 ;
- Care dependency grant from R1 505 tot R1 600; and
- Child support grant from R355 to R380.