South Africa
The 2017/18 Budget has the following impacts:
  • New 45% tax rate for those earning more than R1.5 million per annum (around 100 000 taxpayers are affected)
  • Dividend withholding tax increased from 15% to 20%
  • No increases in VAT or Capital Gains Tax
  • No new allocation for nuclear
  • Budget deficit to decline from 3.4% in 2016/17 to 3.1% in 2017/18
  • For the first time since 2010, tax revenue growth did not match economic growth
    Tax changes
  • Tax on dividends increase from 15% to 20%
  • Taxes on fuel to rise by 39c a litre. (Fuel levy +30c and RAF levy +9c)
  • Total fuel levy on petrol will amount to 36% of pump price
  • Total fuel levy on diesel will amount 40.2% of pump price
  • Properties sold for less than R900 000 will not pay estate duties (2016: from R750 000)
  • Sugar tax: Will be implemented once parliament passes legislation
  • Carbon tax: Revised legislation will be published mid-2017 for public consultation
  • Zero-rating of VAT on fuel to be removed from 2018/19 financial year
  • Duties on malt beer rises by 9% or 12c to R1.47 per 340ml can
  • Duty on unfortified wine rises by 8.8% or 30c to R3.61 per liter
  • Duty on fortified wine rises by 6.1% or 35c to R6.17 per liter
  • Duty on sparkling wine rises by 8.8% or 93c to R11.46 per liter
  • Duties on ciders and alcoholic fruit beverages rise by 9% or 12c to R1.47 per 340ml can
  • Duty on spirits rises by 8.5% or R4.43 to R56.50 per 750ml bottle
  • Duty on cigarettes rise by 8% or R1.06 to R14.30 a packet of 20s
  • Duty on cigars rise by 9.5% or R6.58 to R75.86 per 23g
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