Budget 2018

VAT will go up from 14 to 15%, a move Gigaba says will have the least impact on the economy.

Along with 52 cents a litre fuel levy increase and other tax hikes, Gigaba says this will bring an extra R36 billion in revenue this year.
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http://ewn.co.za/2018/02/21/gigaba-govt-had-little-choice-but-to-increase-vat

With these two alone we could have pretty much wiped out most of the deficit.

But Zuma had to fsck it up with his opportunistic free education announcement. I reckon he should be made to pay for it himself...
 
f2wohf said:
So that he finds a way to build 6 more nuclear plants to get enough bribes to pay for it? How about no?
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Hard to do that when you're no longer #1, and have fraud and (imminent) state capture charges hanging over your head...
 
So between VAT and fuel levy, my total increase in tax paid will amount to around R300 per month. Was expecting much worse.
 
Ancalagon said:
You know what I just realized?

Most software development companies have just hardcoded VAT as 14%. Uh oh.
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Whats worse than hardcoded 14% VAT?

Having a configurable VAT value that not everyone knew they had to use, and no code reviews :D
 
Ockie said:
Would it be wise for CR to oust Gigaba after he delivered this budget speech?
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He won't. It would make him look as unstable as the former. Remember, CR is not the solution to our problems. He is merely less of a problem that whom he replaces.
 
Rouxenator said:
52c/l increase in fuel levies: – comprising 22c/l for general fuel levy & 30c/l in Road Accident Fund levy.
This should go towards building and maintaining roads - so I expect to see a more of that happening

Plastic bag levy to be increased by 50% to 12 cents per bag, effective 1 April 2018.
I am still unclear how this money is used in terms of plastic bags after they are discarded by the consumer who paid the tax?

Vehicle emissions tax will be increased to R110 for every gram above 120 gCO2/km for passenger vehicles and R150 for every gram above 175 gCO2/km for double cab vehicles, effective 1 April 2018.
How will this tax be used to address the issue of CO2 pollution? Can we expect subsidies on electric cars?

Health promotion levy, which taxes sugary beverages, will be implemented from 1 April 2018.
Will this money go towards treating diabetic patients?
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In RSA taxes are named after what they are collected for and not for what they are used... as they all go down the same drain
 
55c/l increase in fuel levy....

... Aaaand everything seems pretty quiet on the e-Tolls front...
 
JayM said:
So between VAT and fuel levy, my total increase in tax paid will amount to around R300 per month. Was expecting much worse.
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This is why VAT is a better approach going forward (spreads the cost over a broader base than PIC which hits 5mil of 55mil only).. though being fiscally efficient and brutal on corruption and fraud + cutting down on wasteful expenditure is the other part of the puzzle that’s still missing.

PS. The fiscal drag means pic costs me R2k/a extra for next financial year.
 
krycor said:
This is why VAT is a better approach going forward (spreads the cost over a broader base than PIC which hits 5mil of 55mil only).. though being fiscally efficient and brutal on corruption and fraud + cutting down on wasteful expenditure is the other part of the puzzle that’s still missing.
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Totally agreed on VAT, it's probably the most viable way to not kill middle classes.

There's actually a 85 billion savings plan in the budget, over 3 years though. Haven't seen it mentioned here, it's a small step and CR had to do things at the last minute. Let's just hope it gets applied and it goes much further.
 
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