Budget 2018: At a glance

Vat increases to 15% from 1 April 2018- the first increase since 1993.

Estate duty increases to 25 % for estates over R 30 million.

Higher fuel levy: Increases by 52 cents per litre, allocated 30 cents for Road Accident Fund and 22 cents for general fuel levy.

GOOD NEWS: offshore allocation for institutional investors increases by 5 %  Provident/Pension Funds now entitled to 30% allocation for offshore investments.

The usual increases in “sin taxes “( alcohol (6-10%)and cigarettes(8.5%.)

For those who shop online, online sales to South Africans by foreign businesses will in future be liable to vat.

Old age grants increase by R 90 per month to R 1690 in April and R 1700 in October.

No relief for fiscal drag for those earning more than R 410 461 pa.

Higher ad valorem taxes on luxury goods such as cosmetics, electronics, motor vehicles and cell phones

Excise duties of 5% and 7% rise to 7% and 9%

NO provision made for any expenditure on the proposed nuclear build for the next 3 years.

Transfer duty –no change.

Tax credits taxpayers receive for their medical scheme contributions have been trimmed to raise funds for National Health Insurance.

Donations above R30 million taxed @ 25% instead of 20%

Increase in plastic bag levy, motor vehicle emissions tax and incandescent light bulbs to promote eco-friendly choices

Carbon tax to be implemented from 1 January 2019

Article By:

Redvers Lee
Director
Property Division