2007 National Budget Speech

60c on a pack of 20's. Ouch. Luckily I gave up a year ago! :p @ Trevor.
 
Trevor Manuel: "Electronic fingerprints and dockets will become the norm. The 2007 Budget also allows for the implementation of the salary upgrade programme that commenced in 2005."

Good stuff.
 
Trevor Manuel: This year, individuals benefit from moderate personal income tax cuts and the elimination of the retirement fund tax. Business benefits from reforms to the secondary tax on companies. We extend accelerated depreciation allowances to certain infrastructure and the cost of corporate reorganisation is reduced.
 
Trevore Manuel:

Most countries have a dividend tax at the shareholder level. We have a secondary tax on companies collected directly from a few thousand companies as opposed to millions of shareholders. To further improve the transparency and equity of the tax system, we are proposing that it be phased out and replaced with a dividend tax at shareholder level. This reform would consist of two phases. We propose reducing the rate from 12,5 per cent to 10 per cent and that the base be redefined to apply to all distributions. This will come into effect on 1 October 2007, except for standard anti-avoidance measures that will commence on conclusion of this speech.
 
1.Net tax relief of R12,4bn.
Tax relief for individuals totals R8,4bn.

2. Secondary tax on companies to be replaced by a dividend tax at a shareholder level. The rate of which changes from 12,5% to 10%.

3. Retirement tax is abolished, last year it was halved from 18% to 9%.

4.The withholding tax on lump sum pension and provident fund payments is reduced to zero for those
earning below R43 000 annually.

4. A basic, compulsory, earnings-related social security system is proposed, for implementation by 2010. Related to this is a wage subsidy for those whose income falls below taxable levels.

4.An additional R13,3bn for the 2010 FIFA World Cup, bringing the total contribution from national
government to R17,4bn – R8,4bn for stadiums and R9bn for transport infrastructure.

5. Provinces receive an extra R24,6bn to improve the quality and access to health, school education, welfare services and for economic services.

6. Local governments get an additional R5bn to the local government equitable share provides further support to municipalities for the delivery of free basic services.

7. Education gets a R4,6bn boost while housing and community development gets R11,6bn more.

8. R2,4bn for industrial development, science and technology.

9. The fight against crime receives R6,8bn more, while R4,7bn for international relations and defence.

10. R3,7bn for the comprehensive HIV and Aids programme, and the revitalisation and modernisation of hospitals and health facilities.

11. GDP is expected to grow at about 5,1% over the forecast period after posting a figure of 4,9% in 2006.

12. CPIX inflation averaging 4,7% over the Medium Term Expenditure Framework period.

13. A main budget surplus of 0,3% in 2006/07 and 0,6% in 2007/08, moving to deficits of
0,1 per cent in 2008/09 and 0,4 per cent in 2009/10.

14. National budget revenue increases to R475,8bn in 2006/07, R9,4bn more than expected.

15 State debt service costs as a percentage of GDP fall from 3% in 2006/07 to 2,1% in
2009/10.

16. Further exchange control relaxations are introduced for offshore investment and customer foreign currency accounts for companies as well as currency futures.
 
• Tax on a packet of 20 cigarettes goes up by 60 cents
• Tax on a 340 ml can of beer goes up by 5 cents
• Tax on a 750 ml bottle of wine up by 10 cents; and
• Tax on a 750 ml bottle of spirits up by R1,88.
 
The general fuel levy is increased by 5 cents a litre and the Road Accident Fund levy is also increased by 5 cents a litre.
 
GavinMannion said:
I see no tax increase on bottled beer :D AWESOME....

Has he mentioned what the new tax brackets are yet?
Click to expand...


There is an online tax caculator at News24 where you can see what effect this will have on your salary (or what your tax reduction will be)
 
Individuals and special trusts
Taxable Income (R) Rates of Tax (R)
0 - 112 500 18% of each R1
112 501 - 180 000 20 250 + 25% of the amount above 112 500
180 001 - 250 000 37 125 + 30% of the amount above 180 000
250 001 - 350 000 58 125 + 35% of the amount above 250 000
350 001 - 450 000 93 125 + 38% of the amount above 350 000
450 001 and above 131 125 + 40% of the amount above 450 000
 
Travelling allowance
Rates per kilometre which may be used in determining the allowable deduction for business-travel, where no records of actual costs are kept.
Value of the vehicle Fixed Fuel Maintenance
(including VAT) cost cost cost
(R) (R p.a.) (c/km) (c/km)
0 - 40 000 15 364 47.3 22.5
40 001 - 60 000 20 910 49.4 26.2
60 001 - 80 000 25 979 49.4 26.2
80 001 - 100 000 31 513 54.8 30.5
100 001 - 120 000 36 978 54.8 30.5
120 001 - 140 000 41 771 54.8 30.5
140 001 - 160 000 47 512 57.2 39.8
160 001 - 180 000 52 629 57.2 39.8
180 001 - 200 000 58 334 65.9 43.8
200 001 - 220 000 64 591 65.9 43.8
220 001 - 240 000 69 072 65.9 43.8
240 001 - 260 000 74 777 65.9 43.8
260 001 - 280 000 79 918 69.3 52.5
280 001 - 300 000 85 440 69.3 52.5
300 001 - 320 000 88 793 69.3 52.5
320 001 - 340 000 95 218 69.3 52.5
340 001 - 360 000 100 011 77.1 68.0
exceeding 360 000 100 011 77.1 68.0
 
Did anyone listen to the speech on TV or radio.

He said there would be 190000 police officers by 2010, and hopefully on the streets and not in the office.

The parliment was quite! :D
 
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