BUDGET SPEECH 2018

On 21 February 2018, Finance Minister Malusi Gigaba delivered the 2018 budget speech and these are the changes that have been noted:

• VAT has increased from 14% to 15% and will take effect from 1 April 2018. This increase will affect 80% of higher income earners. Zero-rating food, such as brown bread, will remain VAT-free.
• The personal income tax of those earning between R0 – R555 600 per annum will remain unchanged, while those who earn more than R555 601 per annum will be affected by a 3.1% increase.
• Estate Duty rates have increased by 5% on dutiable estates in excess of R30 million. The same percentage increase is applicable on donations in excess of R30 million. This means that the rates have moved from 20% and now sit at 25%.
• Sin Tax will increase by 6 – 10%. Tobacco will increase by 8.5%. The table below details the increases:

• The maximum ad valorem excise duty for motor vehicles and luxury goods will increase from 7% to 9% effective 1 April 2018.
• General Fuel Levy will increase by 22 cents per litre, and the Road Accident Fund Levy will increase by 30 cents per litre.
• Social grants will increase as per the table below:

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)