BUDGET SPEECH 2018: WHAT DOES THE TAX PROPOSALS MEAN FOR 2018/19 FINANCIAL YEAR

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BUDGET SPEECH 2018: WHAT DOES THE TAX PROPOSALS MEAN FOR 2018/19 FINANCIAL YEAR
News, Accidents, Robberies & Incidents | National SA News | Government News

21 Feb 2018, Cape Town: In December, former President Jacob Zuma announced that from this year, government would implement fee-free higher education in a phased approach.

In its budget review document, National Treasury said the central adjustments to the fiscal framework in 2018/19 are meant to:

  • Raise an additional R36 billion in tax revenue through an increase in the VAT rate, limited personal income tax bracket adjustments and other measures;
  • Reduce the Medium Term Budget Policy Statement baseline expenditure by R26 billion; 

  • Allocate R12.4 billion for fee-free higher education and training;
  • Set aside an additional R5 billion for the contingency reserve; 

  • Provisionally allocate R6 billion for drought management and public infrastructure. 



“The baseline spending reductions and tax measures feed through to the outer years of the framework, while allocations to higher education increase sharply,” National Treasury said.

Vulnerable households shielded from VAT increase:

The Minister said, meanwhile, that vulnerable households were protected from an increase in VAT.

“Vulnerable households will also be compensated through an above average increase in social grants.

“Some relief will be provided for lower income individuals through an increase in the bottom three personal income tax brackets and the rebates,” Minister Gigaba said.

The Minister said in addition to VAT, National Treasury would increase excise duties on luxury goods and estate duty on wealthy individuals.

He said taken together, National Treasury believed that the proposals best protect the progressive nature of the country’s tax regime to minimise the impact on lower-income households.

ALSO READ - BUDGET SPEECH 2018:


FUEL LEVY increase - 52 cents per litre
Pay Suppliers on Time or be Charged
R57 Billion set aside for Free Higher Education
R6 Billion allocated towards Drought Relief
Smokers & Drinkers to feel the Pinch
Social Grants Increased by Above Inflation Rates





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