#Budget2018

[WATCH] #Budget2018 - VAT hike and R85 billion cut in govt spending

Finance Minister Malusi Gigaba's maiden budget speech in the National Assembly.

Read the full budget speech here.

Gigaba announced a 1% point hike in value-added tax (VAT) and an R85 billion cut in government spending over the next three years in what he’s calling a “tough but hopeful Budget”.

The fuel levy will be hiked by 52 cents.

An increase in the value-added tax rate from 14% to 15%, Aa below inflation increase in the personal income tax rebates and brackets, with greater relief for those in the lower income tax brackets...

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

The largest reallocation of resources towards government’s priorities was on higher education and training, amounting to additional funding of R57 billion over the medium term.

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

The current zero-rating of basic food items such as maize meal, brown bread, dried beans and rice will limit the impact on the poorest households... "Vulnerable households will also be compensated through an above average increase in social grants...

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

All new first-year students with a family income below R350 000 per annum at universities and TVET colleges in the 2018 academic year will be funded for the full cost of study...

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

The National Treasury, in close cooperation with the Reserve Bank, the Financial Intelligence Centre and the South African Revenue Service, is taking several steps to detect, disrupt and deter illicit financial flows...

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

Tax morality is a crucial component of a healthy democracy...It has taken many years and lots of effort to build the foundation of trust that supports our tax morality...We have seen how quickly that citizens’ trust can be eroded...

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

...the President has announced his intention to establish a commission of inquiry into tax administration and governance at Sars..

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

In aggregate, government will be spending R792bn on basic education, R668bn on health, R528bn on social grants." billion on social grants, over the medium term.

Malusi Gigaba, Finance Minister delivering 2018 Budget Speech

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