BUDGET SPEECH / POLICY STATEMENT HIGHLIGHTS
1. WHERE WE ARE
The 2017 GDP growth projection has been revised upward to 1%, which is higher than the 0.7% expected at the time of MTBPS last year.
2. TAX PROPOSALS
New tax measures will raise an additional in 2018/19, mainly through a higher VAT rate and below-inflation adjustments to personal income tax brackets
An increase in the value-added tax rate from 14% to 15% (an additional R36 billion),
A below inflation increase in the personal income tax rebates and brackets, with greater relief for those in the lower income tax brackets,
An increase in the ad-valorem excise duty rate on luxury goods from 7% to 9%,
A higher estate duty tax rate of 25% for estates greater than R30 million,
A 52 cents per litre increase in the levies on fuel, made up of a 22 cents per litre for the general fuel levy and a 30 cents per litre increase in the Road Accident Fund Levy, and
Increases in the alcohol and tobacco excise duties of between 6 and 10 percent.
3. HOW IT WILL BE SPENT:
Consolidated spending will increase from R1.67 trillion in 2018/19 to R1.94 trillion, representing a nominal annual average growth of 7.6%, or 2.1% in real terms.
Education – R792 billion,
Health – R668 billion
Social Grants - R528
Peace and Security – R200 billion
Economic Development – R200 billion
For the full Budget Speech / Policy Statement: https://www.moneyweb.co.za/in-depth/budget/read-the-complete-2018-budget-speech/