#Budget2016: South Africans urged to spend conservatively

Finance Minister Pravin Gordhan's decision not to increase personal income tax has come as a relief for South Africans, but experts have cautioned consumers to rather be thrifty in their spending.

702/CapeTalk's Redi Tlhabi on Thursday spoke to Michelle Acton, a principal consultant at Old Mutual, about what the budget speech means for ordinary South Africans' incomes.

Listen to the interview below:

...Retirement fund deductions have been confirmed and that's going to make some people's salaries look and feel differently at the end of the month as well.

Michelle Acton, principal consultant at Old Mutual

The tyre levy is something very new to us... Essentially it's going to be charged at R2,30 per kilogramme... That's going to start on October 2016.

Michelle Acton, principal consultant at Old Mutual

We don't really know how the sugar tax is going to be working. Only that it's going to be levied on sugar-sweetened products from 2017.

Michelle Acton, principal consultant at Old Mutual

They haven't done any changes to the tax of retirement benefits... Essentially what will happen when you reach retirement is there is a tax payable that you take as cash, versus the amount you take as a pension.

Michelle Acton, principal consultant at Old Mutual

The best thing that one can recommend is to play it safe...It's really critical to monitor your income and expenditure and try keep it as conservative as possible.

Michelle Acton, principal consultant at Old Mutual

This article first appeared on 702 : #Budget2016: South Africans urged to spend conservatively


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