“Today’s budget sets out government’s plans for the next two years and building on what has been achieved since 1994,” says Gordhan.
“A building project of R12-billion has been approved.”
Gordhan spoke about the economical situation South Africa is facing and says: “In simple terms we cannot spend money we do not have and we cannot borrow beyond our abilities to repay.
“We have to be tough on ourselves.”
As Gordhan brought the speech to the subject of tax, he stated that “South Africa has built one of the most effective tax authorities in the developing world if not elsewhere as well”.
Some of the increases he mentioned are:
- Monthly medical tax credit allowance,
- 30c a litre in the general fuel levy in view of lower price of oil,
- Introduction of a tyre levy to finance recycling programmes,
- Plastic bag levy,
- Vehicle emissions tax
- “For those of you who like fizzy drinks, an introduction of tax on sugar sweetened beverages.”
- An increase of 6% to 8.5 % in duties on alcoholic beverages and tobacco products.
“We will continue to act aggressively against evasion of tax through transfer pricing abusers, misuse of tax treaties and illegal or illicit money flows,” Gordhan continues.
An update of the full budget speech to follow.
