Budget Speech 2009

An interesting statistic that came from SARS: hardly surprising, but it does give a good indication on how skewed tax revenues are in this country:

The South African Revenue Service estimates that:

* The people with annual taxable income of between R250 001 and R500 000 (12,5% of registered individual taxpayers) are contributing 29% of personal income tax revenues in the 2009/2010 tax year; and
* The 5,5% with annual taxable income above R500 000 will account for 38% of personal income tax revenues in the same period.
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And the budget in a nutshell

Tax highlights:

* Personal income tax relief for individuals of R13,6bn;
* Savings incentives increased, with adjustments to interest, foreign dividend and Capital Gains Tax calculations;
* Taxes on petrol and diesel increase by 40,5 and 41,5c per litre respectively;
* A packet of cigarettes will cost 88c more;
* Tax on alcohol increased;
* Incentives for energy-efficient technologies;
* Motor vehicle excise reform to tax carbon emissions and a new tax on energy-intensive light bulbs;
* Medical aid deductions increased, proposal to convert to a tax credit system;
* Travel allowance system to be scrapped;
* Dividend tax to be implemented in the second half of 2010;
* Mining Royalty Act postponed;

Economy/public services:

* GDP growth is projected at 1,2% in 2009, rising to 4% by 2011;
* Inflation is expected to fall to 5,8% in 2009;
* Total government spending up to R834bn in 2009
* Public sector borrowing 7,5% of GDP
* Budget deficit 3,8%
* Government spending on infrastructure totals R787bn over the next three years, R390bn of which is capital spending on state-owned enterprises;
* SAA to get R1,6bn injection;
* Eskom's R60bn loan explained;
* Road accident fund in precarious financial position;
* R5,4bn allocated to interventions aimed at improving criminal justice services, the creation of an integrated fingerprint and DNA database and other crime-fighting initiatives.
* Stricter oversight required for executive remuneration in government agencies.
* Greater control for foreign travel, advertising and public relations activities and consultancy services.
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http://www.moneyweb.co.za/mw/view/mw/en/page1655?oid=270032&sn=Detail
 
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If my calculations are correct, the tax saving for a top income earner should be R460.50. That will scale down as you go down the table.

R460.50 for someone earning R525000+
R402.17 for someone earning R410000
R327.17 for someone earning R290000
...
 
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Another disappointing budget from Trevor. To sum it up: A few minor changes here and there, more spending on ANC supporters, almost no relief for working (tax paying) individuals. The sooner Trevor quits, the better.
 
Drunkard #1 said:
Another disappointing budget from Trevor. To sum it up: A few minor changes here and there, more spending on ANC supporters, almost no relief for working (tax paying) individuals. The sooner Trevor quits, the better.
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That will be great news to COSATU and SACP. Be careful what you wish for.
 
Drunkard #1 said:
Another disappointing budget from Trevor. To sum it up: A few minor changes here and there, more spending on ANC supporters, almost no relief for working (tax paying) individuals. The sooner Trevor quits, the better.
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what do u mean almost no relief...talk was that there would be no tax cuts and looking at the tax calculations, there is a bit of saving.
 
They're increasing tax on petrol by 40-odd cents? How on earth do they justify that?
 
Drunkard #1 said:
Another disappointing budget from Trevor. To sum it up: A few minor changes here and there, more spending on ANC supporters, almost no relief for working (tax paying) individuals. The sooner Trevor quits, the better.
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That is a rather one-sided view.
 
Drunkard #1 said:
Another disappointing budget from Trevor. To sum it up: A few minor changes here and there, more spending on ANC supporters, almost no relief for working (tax paying) individuals. The sooner Trevor quits, the better.
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Do you actually know how Trevor Manuel has kept our economy on track? He's kept our economy afloat amid economic turmoil.
It will be a sad day when he resigns.
 
derekc said:
what do u mean almost no relief...talk was that there would be no tax cuts and looking at the tax calculations, there is a bit of saving.
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Mmm, almost R 50 a month for a person earning over R 500k per year. Gee thanks Trev, what would we do without you.

blunomore said:
That is a rather one-sided view.
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It's the view from the tax paying side of the budget (as opposed to the tin cup side). When will us taxpayers (the people that finance this country) get an allowance to counter the ANC's failures. Like education expenses (private schools - for our kids safety and an international quality of education), health care expenses (private hospitals - obviously) and private security expenses. At some point Trevor (and his ANC puppet masters) are going to cross the line, and then his cash cow is going to just refuse to me milked any more.
 
Travel allowance system to be scrapped;
That's a biggie. That was pretty much the last tax incentive we had at companies :(
 
and as for this: SAA to get R1,6bn injection;
:mad: especially after the most recent round of corruption allegations.
 
genetic said:
Do you actually know how Trevor Manuel has kept our economy on track? He's kept our economy afloat amid economic turmoil.
It will be a sad day when he resigns.
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His previous budgets were acceptable, then again a trained monkey could publish an acceptable budget in the good years. With this budget he looks like a rabbit paralysed by a cars headlights. He really has no clue how to stimulate the economy, and instead falls back on his socialist policies. Lets just hope the next one isn't worse.
 
Drunkard #1 said:
His previous budgets were acceptable, then again a trained monkey could publish an acceptable budget in the good years. With this budget he looks like a rabbit paralysed by a cars headlights. He really has no clue how to stimulate the economy, and instead falls back on his socialist policies. Lets just hope the next one isn't worse.
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wth?

.ignored.
 
I think this is disgusting :

The 5,5% with annual taxable income above R500 000 will account for 38% of personal income tax revenues in the same period.
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These people are the least likely to use any of the services offered by the government, except have to contribute the highest percentage.s
 
genetic said:
Do you actually know how Trevor Manuel has kept our economy on track? He's kept our economy afloat amid economic turmoil.
It will be a sad day when he resigns.
Click to expand...
I know it's a rather fringe view, but I thought it's the hardworking tax-paying South African that's kept our economy on track, not government officials like Trevor Manuel. Like governments everywhere, they consume and don't produce, so he and his ilk are a nett drain on the economy.
 
xrapidx said:
I think this is disgusting :



These people are the least likely to use any of the services offered by the government, except have to contribute the highest percentage.s
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What do you mean?

I'm somewhere around there, and I use a LOT of public sector services. Some, I've been lucky not to use (like the cops).
 
sox63 said:
What do you mean?

I'm somewhere around there, and I use a LOT of public sector services. Some, I've been lucky not to use (like the cops).
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I'm there as well, which is why it pisses me off.

I don't use the state healthcare, because it'd probably kill me. I pay over R1000 in medical aid .

The countries roads have done over R10,000 damage to my car in the last year alone - pot holes do wonders for low cars - and this is also on toll roads that I had to pay for traveling on.

Public schools are beyond useless - I don't think this needs justifying.

9/10 times when you call the police, they probably won't come - refer news articles.

Water sanitation isn't done properly - refer Carte Blanch this past weekend.

Electricity supply demands can't be met.

There is no usable public transport for someone in this income bracket

Should I carry on?
 
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