Budget 2016 - Discussion thread

No adjustment to top two brackets (39% and 41%) for PIT, i.e. no allowance made for inflation. Bottom four brackets (18%, 26%, 31% and 36%) adjusted by around 3.3% - compared to inflation of 6.2% for Jan 2016.

[edit]Primary rebates barely increase from R13 257 to R13 500 which is around 2%.

In other words, most of the tax increases coming from "stealth" increases where rates stay the same but brackets and deductions don't allow for full inflation.
 
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Our tax proposals include the following:
 Personal income tax relief of R5.5 billion, which partially compensates for
inflation, focused mainly on lower- and middle-income earners;
 An increase in the monthly medical tax credit allowances;
 An increase of 30 cents a litre in the general fuel levy;
 Introduction of a tyre levy to finance recycling programmes, increases in
the incandescent globe tax, the plastic bag levy and the motor vehicle
emissions tax;
 Introduction of a tax on sugar-sweetened beverages; and
 Increases of between 6 and 8.5 per cent in the duties on alcoholic
beverages and tobacco products.
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SUGAR-SWEETENED
BEVERAGES’ TAX
Obesity is a worldwide concern. South Africa has the worst obesity ranking in
sub-Saharan Africa. This has led to greater risk of heart disease, diabetes and
cancer. Government proposes to introduce a tax on sugar-sweetened beverages
on 1 April 2017 to help reduce excessive sugar intake.
 
Well at least there is no direct tax increase.. but yeah no movement on the bands and such is a stealth tax increase
 
Capital Gains is up slightly. Income tax is the same. Tax treatment of retirement funds are in.
 
Seems a lot of lip service about cutting government expenditure, but actual plan to do so.

Reminds me of people saying 'Hmmm, I intend to save"
 
CGT inclusion rate up to 40% from 33.3% as far as I can see, i.e. an effective rate of 16.4% (40%*41%) for people on top marginal rate for PIT.
 
Only thing I can find in the speech about SAA...

It seems clear, furthermore, that we do not need to be invested in four airline
businesses. Minister Brown and I have agreed to explore the possible merger of SAA
and SA Express, under a strengthened board, with a view to engaging with a
potential minority equity partner, and to create a bigger and more operationally
efficient airline.
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requiem said:
SUGAR-SWEETENED
BEVERAGES’ TAX
Obesity is a worldwide concern. South Africa has the worst obesity ranking in
sub-Saharan Africa. This has led to greater risk of heart disease, diabetes and
cancer. Government proposes to introduce a tax on sugar-sweetened beverages
on 1 April 2017 to help reduce excessive sugar intake.
Click to expand...

vader.jpg
 
The biggest news for me is the new top transfer duty bracket. Could have serious ramifications for R10Mil+ property prices.
 
Of 13.7M registered taxpayers, fewer than 1M individuals contribute 64% of personal income tax revenue
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Cb-r_hZUcAAG5dy.png
 
please clap regularly so you stay awake.

LOL! :D
 
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