IMPACT ON CONSUMERS
Good financial planning needed to take advantage of Treasury's limited tax relief
Consumers must face up to tax increases and conduct proper financial planning to reach their financial goals, says Errol Meyer, head of advisory financial consulting at Standard Bank. "It’s not the end of the world," Meyer said, following limited tax relief announced in the budget. "Tax relief is available through retirement fund savings, tax-free savings accounts and medical expenditure claims." Treasury has done little to compensate for bracket creep, which occurs when personal income tax tables are not adjusted for inflationary salary increases, raising effective tax rates and reducing real income. "The minister has always made a big deal about how much money he was putting back into taxpayers’ pockets. They’ve really limited that adjustment this year, meaning consumers will be paying more tax in real terms," said PwC tax partner Charles de Wet. SA’s personal income tax burden had been steadily increasing since the 2012-13 fiscal year, said PwC tax policy leader Kyle Mandy. Brack...
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