UNDER PRESSURE Finance Minister Malusi Gigaba has tabled his Budget Speech in Parliament amidst speculations it could be his very last.
As expected VAT will be increased to 15% certainly -not good news for an ordinary fellow like yours’ truly and the country at large.
Other key points to single out are:
- Duties on luxury goods and estate duty on wealthy individuals
- Estates above R30m will now be taxed at a rate of 25%.
- Fuel levy will increase by 52c per litre, effective 4 April 2018.
- Carbon tax will be implemented from 1 January 2019
- Fee-free higher education amounts to R57bn over the next three years. This year, R12.4bn will be allocated to poor students.
- Social grants increase by 7% on average.
- Sin tax increases. It’s between 6% and 10% for alcohol. Tobacco products will increase by 8.5%.
- A provisional allocation of R6bn will be set aside in 2018/19 (R10bn over three years) for things like drought relief and augmenting public infrastructure.
By the end of his speech, this will test if President Matamela Cyril Ramaphosa, who has been lauded by all and sundry- would get the same reaction (honeymoon, so they say).
The downsizing of cabinet ministers will also be another talking point, following Ramaphosa’s outlook on budget cut owing to huge fiscus the country faces.