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Most South Africans were pleasantly surprised to discover that there would be no personal income tax rate hike this year, as announced in yesterday’s National Budget presentation in Parliament by Finance Minister Pravin Gordhan.
Tax rates for companies and VAT were not increased either.
However, as in a bid to narrow the budget deficit and stabilise debt growth government wants to raise an additional R18,1 billion in revenue in R2016/17.
Read more: The Budget for dummies: the stuff you really need to know
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 R10 million) and increases in excise duties, the general fuel levy (30 cents per litre) and environmental taxes.
Of course, the change that has everybody talking is government's proposed 20% sugar tax, set to come into effect on 1 April 2017.
Read more: The secret’s out – SA to get a sugar tax
But if all these numbers have your head spinning, fear not. The most important rates you need to worry about are the ones you'll be paying.
Thanks to tax help website, TaxTim.com, you can see how much tax you'll be paying now.
