The budget proposals for 2016 are the most difficult to face in decades. South Africa is between the proverbial rock and and a hard place. High unemployment and low growth. Our economy is in stagflation and this presents very little room to manoeuvre. Our Minister of Finance is an old hand at this as he presented a budget which didn’t appear to raise taxes but indirectly got the revenue.
Capital Gains Tax
This increases with an inclusion rate of 40% for individuals. This means that the next time you sell an asset you will pay a maximum rate of 16,4% of your gain.
Every time you fill up your tank you will pay an extra 30c per litre. So a 50 litre tank will cost an extra R15.
Your new tyres will cost you an additional R2,30 per kilogram
Plastic bag levy
Every time you shop those bags will now cost you 33% more as the levy is upped from 6 to 8 cents a bag.
Incandescent globe tax
The next time you buy a globe you will pay an extra R2 for it.
Sugar sweetened beverages tax
It is time to consider diet cool drinks as the tax on sugar drinks is about to be determined in the spirit of curbing obesity. This is effective from April 2017 so you still have time to kick the habit.
Alcohol and tobacco taxes
As usual these are increased. Rates vary according to the product.
So it boils down to you own personal austerity.
-Use your own bags at the supermarket. -Drive your car less. -Avoid potholes to save your tyres. -Use candles instead of light bulbs. -Wean yourself off sugar drinks. -Smoke and drink less if you can in these times….
Listen to Paul's conversation with Sam Cowen and Africa Melane on Weekend Breakfast below...
Read more from Paul Roelofse at www.investforlife.co.za