Finance Minister Pravin Gordhan's decision not to increase personal income tax has come as a relief for South Africans, but experts have cautioned consumers to rather be thrifty in their spending.
702/CapeTalk's Redi Tlhabi on Thursday spoke to Michelle Acton, a principal consultant at Old Mutual, about what the budget speech means for ordinary South Africans' incomes.
Listen to the interview below:
...Retirement fund deductions have been confirmed and that's going to make some people's salaries look and feel differently at the end of the month as well.— Michelle Acton, principal consultant at Old Mutual
The tyre levy is something very new to us... Essentially it's going to be charged at R2,30 per kilogramme... That's going to start on October 2016.— Michelle Acton, principal consultant at Old Mutual
Now there is tyre levy. Next, levy for breathing. 😔 #Budget2016— Khaya Dlanga (@khayadlanga) February 24, 2016
We don't really know how the sugar tax is going to be working. Only that it's going to be levied on sugar-sweetened products from 2017.— Michelle Acton, principal consultant at Old Mutual
A sugar tax on fizzy drinks. Basically our hangovers are going to be more expensive via Cream Soda & Stoney. 😂 #Budget2016— Poppy Ntshongwana (@PoppyIsMyName) February 24, 2016
They haven't done any changes to the tax of retirement benefits... Essentially what will happen when you reach retirement is there is a tax payable that you take as cash, versus the amount you take as a pension.— Michelle Acton, principal consultant at Old Mutual
The best thing that one can recommend is to play it safe...It's really critical to monitor your income and expenditure and try keep it as conservative as possible.— Michelle Acton, principal consultant at Old Mutual