What does Budget 2019 mean for you?

What does Budget 2019 mean for you?The following proposed tax changes were announced…

  • Income tax rates are left unchanged. The primary rebate was marginally increased but the overall effect of this is that individuals will pay R12.8 billion more in tax – the so called “bracket creep” which means you pay higher taxes as salary increases will put you into higher tax brackets.
  • “Sin” taxes have all been increased with beer, wine, spirits and cigarettes going up on 1 April (see tables below). Indirect taxes will bring R2.3 billion into the fiscus in the 2019/20 tax year.
  • The Sugar Tax will be increased to 2.21cents per gram up from 2.1 cents per gram.
  • The new Carbon Tax will come into effect on 1 June this year – originally intended for 1 January but only passed in Parliament in February. The tax will have a three year phase-in and is primarily intended to fulfil South Africa’s pledge to reduce carbon emissions by 50% by 2030. It will mean substantial administration in affected industries such as engineering.
  • carbon levy will go into effect on 5 June and will be charged on the fuel price at 9 cents per litre.
  • Micro Business Turnover Tax. There is a marginal decrease in the Small Business Corporation Tax.

Read more news in our latest CA(SA)DotNews Newsletter.