Besides the sheer entertainment of Malusi Gigaba quoting Kendrick Lamar, this year’s budget speech contained several critical tax changes that will affect your pocket.
- VAT will increase from 14% to 15%
Expect to pay more on food and home goods, as the VAT increase will be built into the cost. On the bright side, VAT charges will not apply to basic food items like maize, brown bread, dry beans and rice.
- Increase in luxury goods tax
You might have to save up a little longer for that Louis Vuitton purse because luxury goods taxes are on the rise. It was also announced that smartphones are now considered to be a luxury goods item.
- A 52c/litre increase in the levies on fuel
As we head into the new fiscal year, you can expect to pay more for petrol. Now would be a good time to consider joining a lift club or making use of public transport on weekdays.
- Increase in personal tax
Recently received a salary raise? Unfortunately you might have to pay a higher income tax. However, individuals with lower income will receive a greater tax relief.
- Sin Tax
You might want to stretch your ‘dry January’ until next January, as alcohol and tobacco duties will increase by 6% to 10%.
- Tampon Tax
The budget speech also outlined that sanitary products will continue to have VAT, and will remain within the luxury goods category, so you can expect the price of sanitary care to increase.
Looking for budgeting advice? These are the 6 things you should be budgeting for.