Tax proposals From the 2016 Budget Speech

2/24/2016


"This year, in view of the need to raise additional revenue and reduce the budget deficit, we have paid special attention to the fairness and inclusivity of the tax system. We have also been mindful of the need to moderate the impact of tax increases on households and firms in the present economic context," Pravin Gordhan, minister of Finance

Our tax proposals include the following: 

 Personal income tax relief of R5.5 billion, which partially compensates for inflation, focused mainly on lower- and middle-income earners;

 An increase in the monthly medical tax credit allowances;

 An increase of 30 cents a litre in the general fuel levy;

 Introduction of a tyre levy to finance recycling programmes, increases in the incandescent globe tax, the plastic bag levy and the motor vehicle emissions tax;

 Introduction of a tax on sugar-sweetened beverages; and

 Increases of between 6 and 8.5 per cent in the duties on alcoholic beverages and tobacco products.

The Income Tax Act already contains measures to encourage provision of bursaries by employers to employees or their relatives. It is proposed that the income eligibility limits and qualifying bursary values should be increased.

Inclusion of industry-based training organisations in the list of activities qualifying for tax-exemption is also under consideration.

With effect from 2017, international agreements on information sharing will enable tax authorities to act more effectively against illicit flows and abusive practices by multinational corporations and wealthy individuals. Building on the expertise gained by the Large Business Centre since its establishment in 2004, SARS is well placed to take advantage of the new Common Reporting System. Our international collaboration is an essential part of efforts to ensure that the tax system remains robust and contributes to inclusive growth. The minister said that he will announce further steps later in the year.

  • Share:

You Might Also Like

0 comments