On the 21st of February 2018, the Minister of Finance Malusi Gigaba delivered the 2018/2019 national budget speech. The main highlights from the speech are included below:
- Value-Added Tax rate: From the 1st of April 2018, VAT will increase (for the first time in 25 years) from 14% to 15%.
- Estate Duty rate: The Estate Duty rate will increase to 25% from 20% on the dutiable amount of estates worth more than R30 million.
- Personal Income Tax rates: There will be limited relief for the effect of inflation in adjusting PIT rates, which will result in additional tax of R6.8 billion.
- Donations Tax rate: There will be an increase from 20% to 25% on donations upwards of R30 million.
- Tax relief: The Minister of Finance will approve six special economic zones for tax relief.
- Increased Excise Duties: There will be increased excise duties on tobacco and alcohol.
- General Fuel Levy: On the 4th of April 2018, the General Fuel levy will increase by 22 cents per litre.
- Road Accident Fund levy: The Road Accident Fund levy will increase by 30 cents per litre on April 4th 2018.
- Increased Environmental taxes: From the 1st of April 2018, there will be increased Environmental taxes on plastic bags, incandescent light bulbs, and vehicle emissions tax. The new health promotion levy on sugary beverages will also come into effect at the same time.
The points above act as a brief overview of the budget speech. For a more detailed exploration of the 2018 National Budget, follow the links below to access the:
Above and beyond the information provided above, further information can be found through the National Treasury Department's website.
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