Budget 2018 / 2019

The following is a summary of the tax related budget proposals announced by the Minister of Finance.

Budget highlights

  • A one percentage point increase in VAT to 15% with effect from 1 April 2018
  • The VAT increase will result in additional R22.9 billion to the fiscus
  • No adjustments to the top four income tax brackets for individuals
  • Below inflation adjustments to the bottom three brackets for individuals
  • Plastic bag levy to be increased by 50% to 12c per bag with effect from 1April 2018
  • Fuel taxes increase with effect from4 April 2018:
  • A 22c/litre increase in the general fuel levy
  • A 30c/litre increase in the Road Accident Fund
  • Higher as valorem excise duties for luxury goods with effect from 1 April 2018
  • E.g. Motor vehicle will be increased from 25% to 30%
  • Increased estate duty with effect from 1 March 2018:
  • To be levied at 25% for portion of estates above R30 million
  • Consequently, donations in excess of R30 million will also be taxed at 25%
  • Carbon Tax to be implemented 1 January 2019
  • Health promotion levy(sugar tax) will be implemented with effect from 1 April 2018
  • Minister of Finance to approve six special economic zones for additional tax relief
  • Proposals:
  • Increase ”official rate of interest” to a level closer to the prime rate of interest
  • Remove fringe benefit tax for preferential interest rates on low-cost housing loans to qualifying employees.

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  • Due Diligence Investigations
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  • Incentives
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