Who will be Funding the South African Budget Deficit?
22 February 2017
By Ferdie Schneider, National Head of Tax, BDO SA
Mr Pravin Gordhan, the Minister of Finance, announced in his Budget Speech that in 2017 / 18, a new top marginal income tax bracket for individuals will raise an additional R16.5 billion, after some adjustments for bracket creep. The Minister also announced that R6.8 billion will be raised through a higher dividend withholding tax rate, whilst increases in fuel taxes and alcohol and tobacco excise duties will raise additional R5.1 billion, combined. The long awaited sugar tax will be implemented as soon as the legislation has been approved. The Minister also noted that a revised Carbon Tax Bill will be published for public consultation and be tabled in Parliament by mid-2017.
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