Finance Minister Malusi Gigaba delivered his maiden Budget Speech in parliament today.
In his speech, he said that the tax proposals for the 2018 Budget are designed to generate an additional R36 billion in tax revenue for 2018/19. The main tax proposals for the 2018 Budget are:
Also read: Gifts on a budget
- An increase in the value-added tax rate from 14 per cent to 15 per cent.
- 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 per cent to 9per cent.
- A higher estate duty tax rate of 25 per cent 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 forthe general fuel levy and a 30 cents per litre increase in the Road Accident Fund Levy.
- Increases in the alcohol and tobacco excise duties of between 6 and 10 per cent.
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