Johannesburg – Consumers are encouraged to use tax free savings vehicles to ease the possibility of increased tax burden after 2017 National Budget Speech, according to Aneesa Razack, CEO of FNB Share Investing.
Consumers have until 28 February 2017 to make use of their R30 000 maximum tax free allocation for the current tax year.
Razack says it’s vital to make use of this window even if you do not use the full R30 000 maximum allocation.
“To use their tax-free benefits, consumers have an option to buy tax-free shares with a R30 000 maximum lump sum or make R300 monthly contributions to reach their annual allocation without paying any tax on returns or dividends on the investment. The tax-free benefit also puts you in a position to earn better compound interest over time,” says Razack.
Razack further cautions consumers not to rest on their laurels.