3 big tax changes to expect in 2018

[BusinessTech]

3 big tax changes to expect in 2018

South African citizens and investors are still riding high on the "Ramaphosa factor", however February's budget*speech is still going to be an incredibly tense affair.

 

[xrapidx]

How bout firing half of government?

 

[Zophos]

I think this sums it up nicely...

“It is estimated that 13% of the South African population of 56 million people pay income taxes,” he said.

“The government cannot keep looking to this small group to make up the deficit; but with meagre economic growth, there is no immediate prospect of increasing the tax base.

 

[f2wohf]

I think this sums it up nicely...

“It is estimated that 13% of the South African population of 56 million people pay income taxes,” he said.

“The government cannot keep looking to this small group to make up the deficit; but with meagre economic growth, there is no immediate prospect of increasing the tax base.

To be fair, the relevant number would be 37 million of 15-64 year old. Except if you expect kids and elders to work.

http://www.statssa.gov.za/publications/P0211/P02111stQuarter2017.pdf

 

[Garson007]

Just tax us straight out of prosperity forever.

Our biggest issue is unemployment, not government revenue.

 

[SauRoNZA]

Well at least they didn't mention taking the medical aid credits away...

 

[krycor]

Well at least they didn't mention taking the medical aid credits away...

They’d love to do this.. problem is that this will have consequences such as effectively pushing up the cost of medical aid by the rebate value, resulting in more relying on the state. In addition to this, a few groups have said to want to take this up to the constitutional court so this removal of rebate will be delayed.

Vat by 1-2%, all vat exemptions removed (no zero rating), income tax up by 1% for brackets above 500k, and capital gains tax up. Talk about wealth tax for next round..

That’s what I think will happen. Also expect social grants to be upped by 14% + CPI to make up for vat zero rating removal (still cheaper than keeping zero rating) as this directly benefits grant holders vs the current system.

Additionally gov has the drop employment count, so I wonder if cabinet will be reshuffled to smaller collective. I think the employment bill is too large for gov much like Eskom.

The vat thing.. I dunno. It’s the only logical way but then the ANC doing this before elections is unlikely yet it’s this year or next when they have lost an even larger % of paying income tax payers? I think this year is the year.