South Africa 2018/19 Budget Speech

The Minister of Finance, Malusi Gigaba, has delivered the Budget Speech for the fiscal year 2018/19 on 21 February 2018.

Highlights of the Budget Speech summarized:

  • The budget deficit is projected to narrow from 4.3% GDP in 2017/18 to 3.5% in 2020/21
  • The VAT rate will increase from 14 to 15% from 1 April 2018
  • An increase in the ad-valorem excise duty rate on luxury goods from 7% to 9%
  • A higher estate duty tax rate of 25% for estates greater than R30 million
  • A 52 cents per litre increase in the levies on fuel, made up of 22 cents per litre for the general fuel levy and 30 cents per litre increase in the Road Accident Fund Levy
  • Increases in the alcohol and tobacco excise duties of between 6 and 10%
  • The plastic bag levy, motor vehicle emissions tax and the levy on incandescent light bulbs will be raised to promote eco-friendly choices
  • A health promotion levy, which taxes sugary beverages, will be implemented from 1 April 2018
  • Some relief will be provided for lower income individuals through an increase in the bottom three personal income tax brackets and the rebates
  • Personal income tax will bring in R505.8 billion, VAT R348 billion and company tax R231 billion in the 2018/19 financial year
  • An additional R36 billion (R28 billion last year) of tax revenue will be raised by proposed measures in 2018/19.

Important changes affecting Payroll:

Tax Rates from 1 March 2018 to 28 February 2019

Individuals and Special Trusts

Tax Rebates and Tax Thresholds

CRS Tax Pocket Guide for 2018-2019 with additional information to follow

 

Contact our legislation team at info@crs.co.za if you require any additional information.

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