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South Africa: Tax measures in 2018 budget

South Africa: Tax measures in 2018 budget

The Finance Minister on 21 February 2018 delivered the 2018 budget for South Africa.

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Among the provisions in the budget are the following tax and revenue raising proposals:

  • An increase in the rate of value added tax (VAT) from 14% to 15% (an estimated R22.9 billion of additional tax revenue)
  • A below-inflation increase in the individual (personal) income tax rebates and brackets, with greater relief for those in the lower income tax brackets (an estimated R6.8 billion of additional tax revenue)
  • An increase in the ad-valorem excise tax (duty) rate on luxury goods from 7% to 9% (an estimated R1 billion of additional tax revenue)
  • A higher estate duty tax rate of 25% for estates greater than R30 million (an estimated R0.2 billion of additional tax revenue)
  • A higher donations tax rate of 25% for donations exceeding R30 million in one tax year
  • Increases in fuel levies and sin taxes (an estimated R2.5 billion of additional tax revenue)

 

Read a February 2018 report [PDF 147 KB] prepared by the KPMG member firm in South Africa

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