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2013 annual budget speech

Minister Pravin Gordhan presented the 2013 annual budget speech to parliament yesterday. The budget speech sets out the governments spending and income plan for the next 12 months (and beyond). This year special mention was made during the speech in regard to unscrupulous use of EAO/ Garnishee orders. The minister urged all employers to verify any such orders and encouraged law societies to take action against any of their members who were involved in abuses.  Mention was once again made of how government were looking into an end to the use of EAOs entirely.

 

Here are some of the other highlights:

 

Fuel:

Levies on fuel increase by 23c per litre from 3 April 2013. Unfortunately this will be another hit directly after the predicted upcoming 80 Cents or more hike in petrol price.

 

Tax:

Individual tax payers will start paying tax at an annual income of R67 111.00 (up slightly from last year)

 

Taxable Income (R): Rates of Tax:
0 – 165,600 18% of taxable income
165,601 – 258,750 R29,808 + 25% of taxable income above R165,600
258,751 – 358,110 R53,096 + 30% of taxable income above R258,750
358,111 – 500,940 R82,904 + 35% of taxable income above R358,110
500,941 – 638,600 R132,894 + 38% of taxable income above R500,940
638,601 and above R185,205 + 40% of taxable income above R638,600
 
 Rebates:
Tax Thresholds:

 
Below age 65: Age 65 and below 75: Age 75 and over:
R12,080 R6,750 R2,250
R67,111 R104,611 R117,111

 

Sins Tax:

As always drinking and smoking are habits that will cost consumers and even more so this year.

Beer drinkers will pay 7 cents more for a 340ml can.

A bottle of wine will cost 15 cents more

Ciders and alcoholic fruit beverages is set to go up by 7 cents a litre.

A 750ml bottle of spirits will thus cost R3.60 more from April 1st.