On 20 February 2019, Tito Mboweni, Finance Minister delivered his 2019 Budget Speech.
In arguably the most uneventful budget in the past 25 years, hereby a short summary of the most significant proposals for the 2019 Budget as tabled by the Minister of Finance:
- No changes to any corporate income tax and dividend tax rates.
- A 1.1% increase in the primary, secondary and tertiary rebates for individuals, providing a small amount of relief for inflation. The change in the rebate will increase the tax-free threshold from R78 150
to R79 000.
- All individual tax brackets to remain unchanged.
- Increase in sugar-tax to 2.21 cents per gram in excess of 4 grams of sugar per 100ml from 1 April 2019.
- Increase in the fuel levy by 29c/litre, consisting of a 15c/litre increase in the general fuel levy, a 5c/litre increase in the Road Accident Fund (RAF) levy from 3 April 2019.
- The introduction of a carbon tax on fuel of 9c/litre from 5 June 2019, against which no diesel refund can be claimed.
- Increase in excise duties on alcohol and tobacco products by between 7.4 per cent and 9 per cent, well above inflation. Proposals to tax electronic cigarettes and tobacco heating products.
- New items to be added to the VAT zero-rated list: white bread and cake flour and sanitary pads.
- An import tax will be introduced on scrap metal.
- There are no changes to the transfer duty fees.
- General increase across all social grants.
It was also noted that a new, permanent SARS Commissioner to be appointed in the coming weeks.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)