Finance Minister Malusi Gigaba delivered his first national budget speech in Parliament on Wednesday.
2018 Budget Speech
How will it affect you?
Finance minister Malusi Gigaba described the budget as “tough but hopeful” in his first budget speech, where he announced a plan to recoup R36 Billion through extended taxes.
- Tax
- The VAT rate will increase from 14% to 15% from 1 April 2018
- South Africa’s rate is 14% while the international average is 16%. An increase from 14% to 15% will raise between R15 Billon and R20 Billion
- The bottom three personal income breckets will be partially adjusted with rebates for inflation.
2. Levies
Conclusion
The Finance Minister concluded his speech by saying, “Let this be the year of renewal, revitalization and a step change in progress in fostering inclusive economic growth which rolls back unemployment, poverty and inequality.”