The Budget Speech – Highlights

Budget Speech – the 1 min summary

This week saw the budget speech by Finance Minister Pravin Gordhan. Here are the highlghts.

Finance Minister Pravin Gordhan

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Highlights:

Inflation:

The expectation in regard to inflation is around 6%. This is considered reasonable.

Social Grants:

Over the next 3 years there will be a small but steady increase in the old age grant and disability grant will rise from R1 265 to R1350 (R1 285 to R1370 for over 75’s).

The foster care grant will go up from R800 to R830, the child support grant will go up from R295 to R315,  the war veterans grant from R1 285 to R1 370 and the care dependent grant goes from R1265 to R1350.

Sins Tax:

Excise duties on alcoholic beverages and cigarettes will increase by between 6.2% and 12% (no increase on traditional African Beer)

Fuel:

The general fuel levy and Road Accident Fund levy will increase by 12c per litre (fuel levy) and 8c per litre (Road Accident Fund) by the 2nd of April . This means the general fuel levy  will be R2.25 per litre for petrol and R2.10 per litre of diesel.

Personal Tax:

There will be some personal income tax relief to the tune of of R9.3bn. This will mainly be for the lower income group.

There have been some adjustments to the tax tables relating to retirement lump-sum payments.

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