F
Former member 61586
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Sneaky way to disguise increase in tax.
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Budget 2017
- Thread starter AchmatK
- Start date
Sneaky way to disguise increase in tax.
Randy_The_Squirrel
Banned
Yip they getting their just desserts!
NarrowBandFtw
Honorary Master
I'd be happy for the tax brackets not to adjust with inflation, IF our spendthrift government can get inflation itself under control rather ...
Modest but positive growth for SA in 2017
Cape Town – The South African economy is expected to grow by 1.3% in 2017, compared to last year’s modest 0.5%, said Finance Minister Pravin Gordhan in the 2017 Budget Overview.
The growth outlook for 2018 improves even further to 2% as economic conditions strengthen, while 2019 could yield a 2.2% expansion.
The factors that support the more optimistic forecast include marginally higher global growth, stabilising commodity prices, greater reliability of the electricity network, more favourable weather conditions, recovering business and consumer confidence, and improved labour relations.
“The positive trajectory marks a break with several years of declining growth,” Gordhan said.
However, the projected rate of growth is not high enough to markedly reduce unemployment, poverty and inequality. Inclusive growth requires broad-based transformation to break down structural impediments to new economic activities, enable millions of black South Africans to generate income and raise per capita incomes across the board.
To realise small wins in the short term, South Africa needs to bolster business and consumer confidence to support higher levels of investment. Government can boost growth by improving policy certainty, safeguarding investment-grade credit ratings, and ensuring that the state meets its regulatory and service-delivery obligations, Gordhan said.
He lauded the collaborative work done by government, business and labour to rebuild confidence and improve prospects for more inclusive growth.
“The work of the Presidential Business Working Group and the CEO Initiative have led to improvements in the business registration process and the regulatory environment, and increased funding for small businesses and internships,” Gordhan said.
Globally speaking
The International Monetary Fund projects the world economy to grow by 3.4% in 2017 and by 3.6% in 2018.
Although the global economic outlook has improved, it is clouded by policy uncertainty in developed economies and risk to Chinese growth, which put extra pressure on the world trading system.
The outlook for sub-Saharan Africa, a major export destination for South African manufacturers, has been revised marginally upwards to 3.7% for 2018, by and large as a result of a slight increase in commodity prices.
Growth in advanced economies is projected to remain around 2% over the medium term. In the US, the world’s largest economy, 2.3% growth is expected for 2017 and 2.5% in 2018. “This is premised on the introduction and success of a fiscal stimulus,” Gordhan said.
Stronger growth in the second half of 2016 has led to upward revisions of forecasts for Germany, Japan, Spain and the UK.
Developing economies are expected to remain the principal contributors to higher global growth in 2017 and 2018. South Africa’s Brics partners Brazil and Russia should return to moderate growth following recessions in both countries, while growth in India is projected to remain above 7%.
China’s growth forecast is lower compared to other years at 6%. The rapid expansion of credit and high levels of corporate debt pose a significant risk to growth in China.
Fin24
http://www.fin24.com/Budget/modest-but-positive-growth-for-sa-in-2017-20170222-3
Cape Town – The South African economy is expected to grow by 1.3% in 2017, compared to last year’s modest 0.5%, said Finance Minister Pravin Gordhan in the 2017 Budget Overview.
The growth outlook for 2018 improves even further to 2% as economic conditions strengthen, while 2019 could yield a 2.2% expansion.
The factors that support the more optimistic forecast include marginally higher global growth, stabilising commodity prices, greater reliability of the electricity network, more favourable weather conditions, recovering business and consumer confidence, and improved labour relations.
“The positive trajectory marks a break with several years of declining growth,” Gordhan said.
However, the projected rate of growth is not high enough to markedly reduce unemployment, poverty and inequality. Inclusive growth requires broad-based transformation to break down structural impediments to new economic activities, enable millions of black South Africans to generate income and raise per capita incomes across the board.
To realise small wins in the short term, South Africa needs to bolster business and consumer confidence to support higher levels of investment. Government can boost growth by improving policy certainty, safeguarding investment-grade credit ratings, and ensuring that the state meets its regulatory and service-delivery obligations, Gordhan said.
He lauded the collaborative work done by government, business and labour to rebuild confidence and improve prospects for more inclusive growth.
“The work of the Presidential Business Working Group and the CEO Initiative have led to improvements in the business registration process and the regulatory environment, and increased funding for small businesses and internships,” Gordhan said.
Globally speaking
The International Monetary Fund projects the world economy to grow by 3.4% in 2017 and by 3.6% in 2018.
Although the global economic outlook has improved, it is clouded by policy uncertainty in developed economies and risk to Chinese growth, which put extra pressure on the world trading system.
The outlook for sub-Saharan Africa, a major export destination for South African manufacturers, has been revised marginally upwards to 3.7% for 2018, by and large as a result of a slight increase in commodity prices.
Growth in advanced economies is projected to remain around 2% over the medium term. In the US, the world’s largest economy, 2.3% growth is expected for 2017 and 2.5% in 2018. “This is premised on the introduction and success of a fiscal stimulus,” Gordhan said.
Stronger growth in the second half of 2016 has led to upward revisions of forecasts for Germany, Japan, Spain and the UK.
Developing economies are expected to remain the principal contributors to higher global growth in 2017 and 2018. South Africa’s Brics partners Brazil and Russia should return to moderate growth following recessions in both countries, while growth in India is projected to remain above 7%.
China’s growth forecast is lower compared to other years at 6%. The rapid expansion of credit and high levels of corporate debt pose a significant risk to growth in China.
Fin24
http://www.fin24.com/Budget/modest-but-positive-growth-for-sa-in-2017-20170222-3
Rkootknir
Expert Member
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There's definitely a difference between the private and public sector but, on average, taking into account all employees you will find that salary increases usually average CPI + 1% p.a. over the long term for the private sector. For the public sector the increases are usually around CPI + 2-3% p.a.. Obviously there's a large spread in increases between different levels of employment (graduate to senior management) but on average and over longer periods these relationships are remarkably consistent.
Yeah, that's only a concern in like 15 years. Can be adjusted in 2030.
F
Former member 61586
Guest
You are talking nonsense with regard to government pay increases. They have been getting CPI+1% for a good few years now for middle management downwards.
Senior management ALWAYS get less than CPI. Then every 5-7 years they get an additional increase (besides the normal yearly one and also below CPI)so that middle management salaries don't "catch up".
Last edited by a moderator:
SeRpEnT
Executive Member
But ONLY if your increase is based on the CPI and this increase results in you jumping to the next (higher) tax bracket. Or am I wrong?
Not really. You pay the same amount of tax. Part here and the balance in your country of residence. The part that you pay in South Africa has increased, which means the part you pay in your country of residence decreases by the same amount
I see.
Of course this only applies to countries that South Africa has tax agreements with (Which is most major countries)
What this means is, lets say I get taxed at 40%, however my increase now gets taxed at 60%.
You have to calculate what your tax would have been before the increase and after. Then workout the marginal tax rate on the increase.
You have to calculate what your tax would have been before the increase and after. Then workout the marginal tax rate on the increase.
reactor_sa
Executive Member
In addition to the 1% hike last year???
HavocXphere
Honorary Master
Jirre that's more intense than expected. Especially the bracket creep which seems to be their primary way of quietly fixing the whole in the budget
powermzii
Expert Member
And the thunderous applause (twice) for the deputy minister, lol
Rkootknir
Expert Member
- Joined
- Dec 8, 2005
- Messages
- 1,180
- Reaction score
- 98
It's slightly better than last year for higher earners where they made no adjustment at all to the top two brackets (R550k and R701k). Lower & middle earners (R188k to R406k) got 3.35% (still lower than inflation) in 2016/17 vs the 1% in this budget for 2017/18.
HavocXphere
Honorary Master
Well if they keep up the 4%+ difference then people will soon be maxed out in terms of what they can pay.