What the 2015 Budget Speech means for you
The Minister of Finance Nhlanhla Nene presented his first annual Budget Speech in Parliament.
The implications for the speech are national, but also affect every South African through the tax proposals.
Personal income tax rates will be raised by one per cent for all people earning more than R181 900 a year. That means that everyone grossing roughly over R15 000 a month will be putting an extra one per cent into the state’s coffers. There will be more tax relief for those earning R450 000 a year and those in higher income brackets will pay more.
The fuel levy will see a substantial increase with a 30.5c/litre raise to take effect in April, along with a 50c/litre upsurge to benefit the Road Accident Fund. This in combination with the reported increase to take place in March will set back the recent relief motorists have experienced in fuel prices.
Energy prices are also set to rise with a temporary electricity levy increase of almost 50 per cent. The price will rise from 3,5c/kWh to 5,5c/kWh. The levy will reportedly be removed once the electricity shortage is over. There is some good news for energy efficient household with the rebate of 45c/kWh being increased to 95c/kWh.
The excise duties on alcoholic beverages and tobacco products will increase with the following increases taking effect: tax on a quart of beer goes up by 15½ cents, a bottle of wine will cost 15 cents more, a bottle of sparkling wine goes up by 48 cents, a bottle of whisky will be R3.77 more, and a pack of 20 cigarettes goes up by 82 cents.
There is some relief as the Unemployment Insurance Fund is in surplus so UIF contributions for employers and employees will decrease to R10 a month for the next year.
