In this budget summary we give you a quick update on the main budget highlights made during today’s budget speech by Minister Gigaba:
- VAT rate increase from 14% to 15% effective 1 April 2018
- Estate Duty Rate increases from 20% to 25% on dutiable amount of estates above R30 million
- Donations tax rate increases from 20% to 25% on donations of more than R30 million
- Effective Personal income tax increases by not providing full relief for inflation
- Increased Sin Taxes on Tobacco and Alcohol
- General Fuel Levy increase by 22c per litre
- Road Accident Fund Levey increase by 30c per litre
The budget once again focussed on additional taxes from the more well off members of our society with the expected increase in the VAT rate given the amounts of deficits to sourced by our government. Some important cuts in government spending will also be made with some large spending especially in the provision of fee-free higher education.
For the full budget speech the following useful links can be followed on the website of the national treasury:
Of course, as your trusted provider we will ensure to continually keep you compliant on these items and ensure that the VAT rate adjustment is made for you to continue working seamlessly from 1 April 2018 onwards. If you have any queries on how this will affect You and Your business, please feel free to contact your accountant directly.