The 2015/2016 Budget Speech was announced by Finance Minister Pravin Gordhanon 24 February 2016. This page details insights, tax tables, tax guides and transcripts.
Despite announcing personal income tax relief of R5.5 billion for lower and middle-income earners, the National Budget Speech was a stark reminder that consumers need to get used to doing more with less. Financial discipline is crucial because consumers still have to deal with the rising cost of living such as the gradual rise in food prices, a fuel levy increase, electricity costs and interest rates that could rise again
Budget speech highlights
Instead of hitting taxpayers on the personal income front, the government will raise an additional R18.1-billion in tax revenue through alternate methods. This will comprise of:
Fiscal drag limit – projected to bring in a total of R7.6-billion
- Limiting relief for the effects of inflation on personal income tax, or so-called “fiscal drag”. According to a treasury official, tax brackets have only been partially adjusted to compensate for inflation. “This means that we will collect more due to the inflationary impact on wages and income,” he said.
Indirect taxes – projected to bring in a total of R9.084-billion
- Increasing the fuel levy by 30 cents per litre,
- Introducing a tyre levy of R2.30 per kilogram of tyre
- Increasing the incandescent globe tax from R4 to R6 per globe
- Increasing the plastic bag levy from six cents to eight cents per bag
- Increasing the motor emissions tax rate from R90 to R100 for every gram of emissions/km above a certain rate for passenger vehicles, and from R125 to R140 for double cabs.
- Increasing excise duties on tobacco and alcohol (rates will vary depending on the product imported)
- Taxing sugar-sweetened beverages: this is proposed as a way of helping to stem South Africa’s grave obesity and diabetes levels, is proposed to be introduced on April 1,2017 and an amount has not yet been stipulated.
- Taxes on property – projected to bring in an additional R100-million
- “The transfer duty rate on properties above R10-million will increase from 11% to 13%,” said the minister in his speech.
- Capital gains tax – projected to bring in an additional R1-billion
- Government proposes increases that will raise the “maximum effective capital gains tax for individuals from 13.7% to 16.4%, and for companies from 18.6% to 22.4%”.
Gordhan hinted that a VAT increase is on the cards in the medium term, where the Treasury hopes to raise an additional R15-billion in revenue each year for the two outer years. “The current tax mix suggests that there may be greater room to increase direct taxes, such as VAT,” he noted in the budget review. “Any proposals along these lines would need to be accompanied by measures to improve the pro-poor character of expenditure programmes so that the fiscal system remains progressive.”
FREE online salary tax calculator
Want to know whether the 2016/2017 Budget Speech will cost you more at the end of every month?
You can simply check online with our latest salary tax calculator. All you need to do is to simply enter your current monthly salary and your monthly or annual allowances.
You will then be able to view what your tax saving or liability will be in the 2016/2017 tax year.
New tax rates and legislation
The rates of tax in respect of the 2016/2017 tax year are set out in the tax table below.
RATES OF TAX FOR INDIVIDUALS
|Taxable Income R||Rates of Tax R|
|0 – 188 000||18% of taxable income|
|188 001 – 293 600||33 840 + 26% of taxable income above 188 000|
|293 601 – 406 400||61 296 + 31% of taxable income above 293 600|
|406 401 – 550 100||96 264 + 36% of taxable income above 406 400|
|550 101 – 701 300||147 996 + 39% of taxable income above 550 100|
|701 301 and above||206 964 + 41% of taxable income above 701 300|
|Below 65||Above 65, below 75||Above 75|
|R13,500||R 7,407||R 2,466|
Online Travel Logbook
Online Our SARS compliant online travel logbook allows you to keep track of your travel claims throughout the year and view a summary at the end of the tax year. All you need to do is simply enter your kilometres travelled, destination details and rate of reimbursement, easy!
Remember to sms your car’s kilometre reading as on 28 February 2017 to your own cellphone for safe keeping.
Read the Budget Speech Transcript
To read the 2015/2016 Budget Speech, click here.
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