Budget breakdown: what you need to know about taxes, duties and exchange control
KPMG’s budget summary lists all the important changes coming your way
Finance Minister Malusi Gigaba delivered his maiden national budget address on February 21 2018. Over the past few years, KPMG had predicted an increase in the value-added tax (VAT) rate, and the key tax proposal in this budget was that, for the first time since 1993, South Africa would increase the VAT rate. Key highlights The national Treasury aims to bring in an additional R36bn of tax revenue through the following key tax proposals:
An increase in the VAT rate from 14% to 15% (an estimated R22.9bn of additional tax revenue). A below-inflation increase in the personal income-tax rebates and brackets, with greater relief for those in the lower-income tax brackets (an estimated R6.8bn of additional tax revenue). An increase in the ad valorem excise duty rate on luxury goods from 7% to 9% (an estimated R1bn of additional tax revenue). A higher estate duty tax rate of 25% for estates greater than R30m (an estimated R200m of additional tax revenue). A higher donations tax rate o...
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