Entrepreneurs, we get it, you’re very busy so, here’s a quick summary of the 2018 Budget speech.
The Finance Minister’s speech included the following:
• The budget deficit is projected to decrease from 4.3% in 2017/18 to 3.5% in 2020/21
• It is expected that gross debt will rise to 56.0% of GDP in 2020/21
• This year’s proposed tax measures will raise an additional R36 billion in 2018/19
What will you be paying more for?
• VAT is for the first time in our democratic history being increased: from 14% to 15%, effective 1 April 2018
• To promote eco-friendly choices, the plastic bag levy, car emissions tax and the levy on incandescent light bulbs will be increased
• Sugary beverages will now be taxed under a new health promotion levy from 1 April 2018
• The fuel levy has been increased by 52 cents/litre
• Alcohol and tobacco excise duties will be increased between 6-10%
• Estates worth more than R30 million will now be taxed at 25%
• Any donation in excess of R30 million in a tax year will be taxed at 25%
How will Government be providing financial support?
• Social development spend has been increased the most, by 9.2% over the MTEF
• Social grants will see R528.4 billion being spent over the MTEF
• The child support grant will increase from the baseline of R380 to R400 on 1 April and then to R410 on 1 October 2018
• The old age, disability and care dependency grants increase to R1 690 on 1 April and to R1 700 on 1 October 2018
• Higher education and training is receiving R324 billion in total over the MTEF
• Basic education, including infrastructure, learner and teacher support receives R792 billion
• For various purposes, including helping with the challenges of the drought, a provisional budget of R6 billion has been set aside. This includes short term disaster relief grants to the value of R473 million in 2018/19
• The HIV/AIDS and TB conditional grant receives R66.4 billion over the MTEF
• Subsidised public housing receives R123.3 billion over the MTEF