Supplementary Budget 2020
for subscribers

No big tax surprises

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

Cape Town  - Finance Minister Pravin Gordhan delivered a surprise during Wednesday afternoon’s National Budget presentation in Parliament by not hiking the personal income tax rate. Tax rates for companies and VAT were not increased either.

However, as part of fiscal measures to narrow the budget deficit and stabilise debt growth government proposes to raise an additional R18.1bn in revenue in R2016/17. This will mainly be achieved by upward adjustments to capital gains tax (the effective rate raised from 13.7% to 16.4% for individuals), transfer duty (11% to 13% on property sales above R10m) and increases in excise duties, the general fuel levy (30 cents per litre) and environmental taxes.

Although limited fiscal drag relief of R5.5bn in personal income tax will be given, the government will still raise an additional R7.6bn from individuals. This will be done by partially increasing marginal personal income tax brackets and rebates for inflation.

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
16.77
(-3.00)
ZAR/GBP
21.49
(-2.07)
ZAR/EUR
19.74
(-2.36)
ZAR/AUD
12.12
(-2.04)
ZAR/JPY
0.16
(-2.85)
Gold
1911.76
(-1.84)
Silver
24.70
(-7.46)
Platinum
885.00
(-4.77)
Brent Crude
43.55
(0.00)
Palladium
2271.00
(-2.77)
All Share
53319.08
(-2.48)
Top 40
49153.11
(-2.47)
Financial 15
9519.48
(-3.27)
Industrial 25
71014.52
(-2.13)
Resource 10
53931.91
(-2.72)
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% - 1320 votes
It depends on how the funds are used.
73% - 8676 votes
No. We should have gotten the loan elsewhere.
16% - 1914 votes
Vote