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Cape Town - Finance Minister Pravin Gordhan’s budget speech was something of a damp squib and without doubt an “election budget”.
This is the opinion of Meredith Harington, chartered accountants & business advisors.
The firm said the minister justified his limited announcements by announcing that the 2014 tax-collection expectation would in fact be met.
Some of the tax highlights according to the firm include:
- Individual tax rates remain unchanged but adjustments to bands for “bracket-creep” have been made;
- Company tax rate remains at 28%;
- CGT inclusion percentage remains unchanged;
- VAT unchanged at 14%;
- Quite a significant increase in the tax-free portion of retirement fund payouts;
- No change to donations tax or estate duty;
- Fuel levy contained at inflation;
- Sin taxes - increase on alcohol and tobacco as expected, but not excessive.
“In simple terms, government does not want to upset people in numbers, so we should be happy that it is business as usual,” the firm concluded.
This is the opinion of Meredith Harington, chartered accountants & business advisors.
The firm said the minister justified his limited announcements by announcing that the 2014 tax-collection expectation would in fact be met.
Some of the tax highlights according to the firm include:
- Individual tax rates remain unchanged but adjustments to bands for “bracket-creep” have been made;
- Company tax rate remains at 28%;
- CGT inclusion percentage remains unchanged;
- VAT unchanged at 14%;
- Quite a significant increase in the tax-free portion of retirement fund payouts;
- No change to donations tax or estate duty;
- Fuel levy contained at inflation;
- Sin taxes - increase on alcohol and tobacco as expected, but not excessive.
“In simple terms, government does not want to upset people in numbers, so we should be happy that it is business as usual,” the firm concluded.
