The budget and your wallet...The budget and your wallet:
- Personal income tax relief of R9.5bn. 54% of the relief will go to taxpayers who earn less than R260 000 a year.
- General fuel levy increases by 20c a litre, the Road Accident Fund levy increases by 8c a litre.
- Sin taxes: A packet of 20 cigarettes will cost 58c more, a 750 ml bottle of liquor (spirits) R6 more, a 340 ml can of beer 9c more and a 340 ml can of cider will cost 8.84c. A litre of wine will cost 18c more.
- A new tax credit will replace the tax reduction for medical aid contributions.
- Tax incentive to encourage savings that may replace the current interest exemption thresholds.
- A 15% dividend withholding tax to kick in on 1 April. Pension funds, companies are exempted from this tax.
- Significant tax concessions and reduced red tape for small businesses.
- Electricity levy increased by 2.5c/kWh.
- Budget deficit of 4.6% in 2012/13, 4% in 2013/14 and 3% in 2014/15.
- Government spending to reach R1.1 trillion in 2012/13.
- National government’s net loan debt to reach R1.5 trillion in 2014/15.
- The national treasury expects economic growth of 2.7% in 2012, 3.6% in 2013 and 4.2% in 2014.
- The national treasury expects headline inflation to be 6.1% in 2012, 6.2% in 2013 and 6.1% in 2014.
Government spending plans
- R9.5 billion for the Economic Competitiveness and Support Package, including R2.3 billion for dedicated special economic zones;
- R6.2 billion for job creation;
- R3 billion for equalisation of subsidies to no fee schools and expansion of access to Grade R;
- R1 billion for National Health Insurance Pilot project;
- R1.4 billion for Early Childhood Development;
- R4 billion for Passenger Rail Agency of South Africa for coaches, as the start of a programme to replace the current fleet;
- R1 billion for Signalling and depot infrastructure related to this new rail transport programme;
- R4.7 billion for electricity demand side management grant: Eskom for the installation of solar water geysers;
- R1.8 billion for municipal water infrastructure;
- R3.9 billion for upgrading informal settlements.