The Wealth Room

Budget 2017: What you need to know

Significant announcements

1. New 45% tax rate for those earning more than R1.5 million per annum (around 100 000 taxpayers are affected)
2. Dividend withholding tax increased from 15% to 20%
3. No increases in VAT or Capital Gains Tax
4. No new allocation for nuclear
5. Budget deficit to decline from 3.4% in 2016/17 to 3.1% in 2017/18.
6. For the first time since 2010, tax revenue growth did not match economic growth

Tax changes

1. Government will raise an additional R28 billion during the new tax year
2. New 45% marginal tax rate for those earning more than R1.5 million per annum
3. Other taxpayers will not receive full relief from fiscal drag – the impact of inflation on tax brackets
4. Tax on dividends increase from 15% to 20%
5. 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
6. Properties sold for less than R900 000 will not pay estate duties (2016: from R750 000)
7. Sugar tax: Will be implemented once parliament passes legislation
8. Carbon tax: Revised legislation will be published mid-2017 for public consultation
9. Zero-rating of VAT on fuel to be removed from 2018/19 financial year

Sin taxes

1. Duties on malt beer rises by 9% or 12c to R1.47 per 340ml can
2. Duty on unfortified wine rises by 8.8% or 30c to R3.61 per litre
3. Duty on fortified wine rises by 6.1% or 35c to R6.17 per litre
4. Duty on sparkling wine rises by 8.8% or 93c to R11.46 per litre
5. Duties on ciders and alcoholic fruit beverages rise by 9% or 12c to R1.47 per 340ml can
6. Duty on spirits rises by 8.5% or R4.43 to R56.50 per 750ml bottle
7. Duty on cigarettes rise by 8% or R1.06 to R14.30 a packet of 20s
8. Duty on cigars rise by 9.5% or R6.58 to R75.86 per 23g