5 most important ways Budget 2017 will tighten your belt for you

Finance Minister Pravin Gorhan’s 2017 Budget Speech is done and dusted.

Times are tough!

Let the belt-tightening begin!

The Money Show’s Bruce Whitfield interviewed Personal Finance Journalist Maya Fischer-French.

She spoke about the five main aspects of this year’s Budget that’ll affect all of us:

  • With dividend tax increased to 20%; Tax Free Savings Accounts are now even more attractive. The annual contribution limit has been raised to R33 000; without any mention made about the lifetime limit.

  • South Africans – not only rich ones – will pay more personal taxes. Of the R16.5 billion raised in personal tax R12.1 billion will come from bracket creep. R4.3 billion will come from an increase in the top tax bracket to 45%. This can’t be offset with a retirement fund due to the R350 000 annual cap in tax deductible contributions.

  • Why you may want to switch to wine: Wine has the lowest targeted excise duty of 11% vs 23% for beer and 36% for spirits. A litre of unfortified wine attracts R3.61 in tax, (sparkling: R11.46) while beer attracts R4.38.

  • Huge jump in fuel price of 39c/l (That’s R19.50 for a 50 litre tank – we now pay R142.50 of tax per tank of petrol).

  • The taxman will be coming for us again next year: expect an increase in VAT, VAT on fuel and sugar tax (82c per can of coke).

For more detail listen to the interview in the audio below.

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

Article brought to us by Old Mutual.


This article first appeared on 702 : 5 most important ways Budget 2017 will tighten your belt for you


Recommended

by THE NEWSROOM

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Why companies pay ‘golden handshakes’

Why companies pay ‘golden handshakes’

The Money Show’s Bruce Whitfield interviews Khokhela Consulting MD Laurence Grubb.

'We should be cutting interest rates, but there’s so much uncertainty!'

'We should be cutting interest rates, but there’s so much uncertainty!'

South Africa’s repo rate remains unchanged at 6.75%. Bruce Whitfield interviews Nedbank economist Busisiwe Radebe.

Cape Town is set to make history and headlines around the world on 21 April 2018

Cape Town is set to make history and headlines around the world on 21 April 2018

For centuries it had abundant water supplies. That's over. Bruce Whitfield interviews Future Water Institute’s Dr Kevin Winter.

5 business building habits to develop for 2018

5 business building habits to develop for 2018

The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator’s Pavlo Phitidis.

Strategies for reducing your exposure to Naspers

Strategies for reducing your exposure to Naspers

Naspers constitutes a whopping 20% of the Top 40 index. Bruce Whitfield interviews Personal Financial Advisor Warren Ingram.

You can definitely teach creativity! – Rob Stokes (Red and Yellow )

You can definitely teach creativity! – Rob Stokes (Red and Yellow )

The Money Show’s Bruce Whitfield interviews Red and Yellow Creative School of Business Chairperson Rob Stokes.

Popular articles
Bergvliet High School implements water saving measures

Bergvliet High School implements water saving measures

The school has started implementing its short-terms goals, tabled with the help of parents, staff and learners.

No returns, no refunds school uniform shop to be taken to task

No returns, no refunds school uniform shop to be taken to task

Parents are concerned about Felix Sports no returns, no refunds and no exchanges policy.

This is how much you should be paying your domestic worker

This is how much you should be paying your domestic worker

Stephen Rathai, director of employment standards at the Department of Labour talks on the new national minimum wage.

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.