These are some of the changes you can expect when Budget 2018 comes into effect on 1 March.
1. Alcohol and tobacco
Taxes, known as excise duties, on the not so healthy items in our baskets increase from 1 March 2018. A pack of 20 cigarettes will cost R1.22 more and 25g of pipe tobacco will cost 38 cents more. Wine lovers will pay 30 cents more for a 1 litre bottle, and when you’re celebrating with a bottle of sparking wine you’ll need an extra 97 cents. Spirit drinkers will pay R4.80 more for a 750ml bottle of their favourite tipple. Beer and cider drinkers need deeper pockets too. 340ml cans of malt beer and cider increase by 14 cents.
2. Sugary beverages
Sugary drinks will be taxed if they contain more than 4g of sugar per 100ml. You can find the sugar content on the drink’s nutrition label. A 340ml can of a well-known soda contains 10g of sugar per 100ml. For every gram over the 4g limit, an extra 2.1c is levied. Your can that cost R10 will cost R10.12 from 1 April 2018.
3. Petrol and diesel
On 4 April the price of petrol will increase by 52 cents a litre. 30 cents of this is for the road accident fund levy and 22 cents for the general fuel levy.
4. Plastic bags and incandescent light bulbs
The plastic bag levy increases to 12 cents a bag on 1 April, and there’s an increase from R6 to R8 on incandescent light bulbs. Switching to energy efficient light bulbs will save you some money.
5. Luxury goods such as electronics, cosmetics, smart phones and golf balls
These goods incur tax of between 5 and 7%, this will increase to 7 – 9%.
6. Higher income earners will pay more tax
If you earn less than R78 150 and are under 65 years you won’t pay any income tax. This is known as the tax threshold. Over 65s don’t pay tax if their income is lower than R121 000 and over 75s, R135 300.
