MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Budget 2017 Main Tax Proposals

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The main tax proposals in the South African Budget 2017 are:

  • A new top personal income tax rate of 45 per cent for those with taxable incomes above R1.5 million.
  • An increase in the dividend withholding tax rate from 15 per cent to 20 per cent.
  • Limited bracket creep relief, increasing the tax free threshold from R75 000 to R75 750.
  • An increase of 30c/litre in the general fuel levy and 9c/litre in the road accident fund levy.
  • Increases in the excise duties for alcohol and tobacco, of between 6 per cent and 10 per cent.

Relief will be provided in the affordable housing market through an increase in the threshold above which transfer duty is paid from R750 000 to R900 000. The annual allowance for tax free savings accounts will be increased to R33 000. The medical tax credit will be increased in line with inflation this year. It should be noted though that consideration is being given to possible reductions in this subsidy in future, as part of the financing framework for National Insurance.

Further consultations are currently taking place on the tax on sugary beverages. Arising from these discussions, and working closely with the Department of Health, the proposed design has been revised to include both intrinsic and added sugars. The tax will be implemented later this year once details are finalised and the legislation is passed.

The proposed carbon tax and its date of implementation will be considered further in Parliament this year.

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.