Supplementary Budget 2020
for subscribers

Six tax predictions that won't make SA smile

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Cape Town - There won't be much to smile about as Finance Minister Pravin Gordhan battles to save the country from junk status in his 2016 Budget Speech, warned an industry expert.

Wouter Fourie, CFP® - FPI Financial Planner of the Year 2015 pulls no punches: "Saving us from becoming a junk credit status country must be one of the main aims of this budget. Finance Minister Pravin Gordhan will not be in a position to make people smile when he announces how taxes will be increased to save our country from disaster."

The purpose of a budget is to plan ahead so that there are sufficient funds to cover expenses. "Tax is the method to increase income and unfortunately as citizens of this country, we will all bear the price toward solving this problem created for us," warned Fourie.

READ: Taxpayers will feel brunt of Gordhan's whip

Here are some of his predictions for a budget which may be the most significant yet for South Africa's young democracy:

Income

1. Personal tax will rise by between 2% and 3% on all levels, taking the higher bracket from 41% to 43% and even as high as 44%.
2. VAT will increase from 14% to 15%.
3. The fuel levy: We should  expect another increase.
4. Corporate tax: No increase expected here as taxing the corporates will have a direct influence on slowing down economic growth even further, something SA can’t afford at this stage.
5. Sin tax: An increase should always be expected.
6. Capital gains tax: A higher inclusion rate should be expected, rising from 33.3% up to 40% for individuals and companies and from 66.6% up to 70% for companies and trusts.

Expenditure

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
16.62
(+0.64)
ZAR/GBP
21.53
(+0.29)
ZAR/EUR
19.53
(+0.36)
ZAR/AUD
11.97
(+0.07)
ZAR/JPY
0.16
(+0.63)
Gold
1898.46
(+0.58)
Silver
23.69
(+1.52)
Platinum
899.00
(+1.03)
Brent Crude
42.12
(+1.78)
Palladium
2311.01
(+0.86)
All Share
54790.08
(+0.97)
Top 40
50466.47
(+0.85)
Financial 15
10301.90
(+2.28)
Industrial 25
73699.97
(+0.70)
Resource 10
53752.96
(+0.69)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1400 votes
It depends on how the funds are used.
73% - 9070 votes
No. We should have gotten the loan elsewhere.
16% - 1996 votes
Vote