5 most important ways Budget 2017 will tighten your belt for you

Finance Minister Pravin Gorhan’s 2017 Budget Speech is done and dusted.

Times are tough!

Let the belt-tightening begin!

The Money Show’s Bruce Whitfield interviewed Personal Finance Journalist Maya Fischer-French.

She spoke about the five main aspects of this year’s Budget that’ll affect all of us:

  • With dividend tax increased to 20%; Tax Free Savings Accounts are now even more attractive. The annual contribution limit has been raised to R33 000; without any mention made about the lifetime limit.

  • South Africans – not only rich ones – will pay more personal taxes. Of the R16.5 billion raised in personal tax R12.1 billion will come from bracket creep. R4.3 billion will come from an increase in the top tax bracket to 45%. This can’t be offset with a retirement fund due to the R350 000 annual cap in tax deductible contributions.

  • Why you may want to switch to wine: Wine has the lowest targeted excise duty of 11% vs 23% for beer and 36% for spirits. A litre of unfortified wine attracts R3.61 in tax, (sparkling: R11.46) while beer attracts R4.38.

  • Huge jump in fuel price of 39c/l (That’s R19.50 for a 50 litre tank – we now pay R142.50 of tax per tank of petrol).

  • The taxman will be coming for us again next year: expect an increase in VAT, VAT on fuel and sugar tax (82c per can of coke).

For more detail listen to the interview in the audio below.

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Article brought to us by Old Mutual.


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