Finance Budge FA 2014 - Standard Bank & SOCIAL SECURITY ... Investments in bank deposits, collective...
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SPENDING PLAN BUDGET DEFICIT -R153 BILLION GROWTH & INFLATION DEBT & LOAN REVENUE & EXPENDITURE 39.7 % R114.9 BN 2014 BUDGET 10.8% NET LOAN DEBT DEBT SERVICE COSTS 6.2% 2.7% 8.9% 8.8% MEDICAL SCHEMES PERSONAL TAX SIN TAX 13c R4.76 68c 9c 9c BOTTLE OF 750ML WINE BOTTLE OF 750 ML SPIRITS 340ML CAN OF BEER CIDERS AND ALCOHOLIC FRUIT DRINKS BOX OF 20 CIGARETTES FUEL & ENVIRONMENT 12CENTS PER LITRE 8CENTS PER LITRE FUEL LEVY ROAD ACCIDENT FUND LEVY into a preservation fund when they change their employer. SOCIAL GRANTS R1350 p/m R1350 p/m R830 p/m R315 p/m THE MOST IMPORTANT GRANTS HAVE BEEN RAISED BY 6.7 % MEDICAL SCHEMES PENSION FUND YOUTH EMPLOYMENT R847 BILLION INFRASTRUCTURE R0 - R174 550 R174 551 - R272 700 R272 701 - R377 450 R377 451 - R528 000 R528 001 - R673 100 R673 101 AND ABOVE HOW WILL THIS AFFECT OLD AGE DISABILITY CHILD SUPPORT FOSTER CARE NATIONAL HEALTH INSURANCE YOU? INFLATION GDP GROWTH This infographic was designed by Columinate Brought to you by VAT CORPORATE INCOME TAX FUEL LEVIES CUSTOMS AND EXCISE DUTIES REVENUE FROM OTHER HEALTH & SOCIAL OF GDP EDUCATION DEFENSE, PUBLIC ORDER & SAFETY ECONOMIC AFFAIRS COMMUNITY AMENITIES & HOUSING EMPLOYMENT & SOCIAL SECURITY OTHER (INCLUDING GENERAL PUBLIC SERVICES AND SCIENCE, TECHNOLOGY AND ENVIRONMENT) PROJECTED DEFICIT -R153 BILLION 4% ( ( Total projected revenue: R1 099 BILLION Total projected expenditure: R1 252 BILLION REVENUE EXPENDITURE TRANSPORT, ENERGY & COMMUNICATIONS EDUCATION, SPORT AND CULTURE HEALTH & SOCIAL PROTECTION DEFENSE, PUBLIC ORDER & SAFETY LOCAL GOVERNMENT & HOUSING 3.5% 5.4% 7% 5.7% 11.8% TAXABLE INCOME OF INDIVIDUALS IN RAND TAX PAYABLE IN RANDS THE GROWTH IN BUDGET DEFICIT EXPECTED TO COME DOWN TO 5.5% in 2016 EXPECTED TO ACCELERATE TO 3.5% IN 2016 FORECAST TO PEAK AT 44.3% in 2016/17 EXPECTED TO PEAK AT R139 BN IN 2016/17 R31 419 + 25% OF TAXABLE INCOME ABOVE R174 550 18% OF TAXABLE INCOME R55 957 + 30% OF TAXABLE INCOME ABOVE R272 700 R87 382 + 35% OF TAXABLE INCOME ABOVE R377 450 R140 074 + 38% OF TAXABLE INCOME ABOVE R528 000 R195 212 + 40% OF TAXABLE INCOME ABOVE R673 100 There will be further reforms to improve governance over pension and provident funds. A tax incentive to encourage youth employment must help to promote BEE. There are efforts to try and give 6 million employed South Africans who do not enjoy access to an employer-sponsored retirement plan, some form of cover. Improvements are to be made in public sector health delivery and the high cost of private health care has to be reduced. WILL BE SPENT ON PUBLIC INFRASTRUCTURE INVESTMENT OVER THE NEXT 3 YEARS IN ORDER TO OBTAIN MORE INCLUSIVE GROWTH AND DEVELOPMENT. PERSONAL TAX 23.1% 20,3% 13,1% 11,4% 11,4% 4,5% 16,1% 26,9% 20% 4,8% 8,2% 6,3% 33,8% A white paper on the National Health Insurance and a financing paper have been completed and will be tabled in Cabinet shortly. R9.3 Billion income tax relief is being granted to households. INCOME TAX The amount an individual can earn before they are required to pay tax has been raised for the tax year that runs from 1 March 2014 to 28 February 2015 and it is as follows: Below age 65 - R70 700 Age 65 and over - R110 200 Age 75 and over - R123 350 The Old Age Grant is increased to R1 350 The State Old Age Grant for people older than 75 is increased to R1 370 The War Veterans Grant is increased to R1 370 The Disability Grant is increased to R1 350 The Foster Care Grant is increased to R830 The Care Dependency Grant is increased to R1 350 The Child Support Grant is increased to R315 Excise duties on alcoholic beverages (especially beer, sparkling wine and spirits) will increase by between 6.2% and 12%. There is no rise in the excise duty on traditional African beer or beer powder. The rises in excise duties are as follows: Malt beer up by 9c per 340ml can Unfortified wine up by 13c per 750ml bottle Fortified wine up by 27c per 750ml bottle Sparkling wine up by 62c per 750ml bottle Ciders and alcoholic fruit beverages up 9c per 330ml bottle Spirits up R4.76 per 750ml bottle Cigarettes up by 68c per packet of 20 Cigarette tobacco up by 87c per 50g Pipe tobacco up by 9c per 25g Cigars up by R5.11 per 23g To encourage individuals to save in tax-preferred savings accounts, tax exemptions for interest, dividends and capital gains will be granted for investments of not more than R30 000 per year per individual. Investments in bank deposits, collective investment schemes, exchange traded funds and retail savings bonds will be allowed to be offered in these savings accounts by banks, asset managers, life insurers and brokers. Further details will be available over the next 12 months. Lump sum payments from retirement funds are taxed using different retirement tax tables from those that apply to other taxable income. The rates for these lump sums are to be adjusted to limit instances where lower income taxpayers are required to pay tax on lump sums even though they did not benefit from a deduction for contributions to the retirement fund, because their taxable income was below the tax threshold. The adjustments will have the effect that a lump sum payable on retirement will be tax free if the amount is R500 000 or less. The rebate for individual taxpayers has also gone up as follows: Primary (for all taxpayers) - R12 726 Secondary (aged 65 and over) - R7 110 Tertiary (aged 75 and over) - R2 367 SOCIAL GRANTS SIN TAX ENCOURAGEMENT OF SAVING General fuel levy will increase by 12 cents per litre and the Road Accident Fund levy will increase by 8 cents per litre from 2 April 2014. This will push up the general fuel levy on petrol to R2.25 per litre of petrol and to R2.10 per litre of diesel. FUEL LEVY 40% of the income tax relief goes to South Africans earning less than R250 000 per year. The tax relief has been structured to benefit taxpayers who earn below R350 000 per year the most. 56% of the tax relief will go to taxpayers who earn below R350 000 per year and 30% of the tax relief will go to the taxpayers who earn between R350 000 and R750 000 per year.
Transcript of Finance Budge FA 2014 - Standard Bank & SOCIAL SECURITY ... Investments in bank deposits, collective...
SPENDING PLAN
BUDGET DEFICIT
-R153 BILLIONGROWTH & INFLATION
DEBT & LOAN
REVENUE & EXPENDITURE
39.7 % R114.9 BN
2014BUDGET
10.8%
NET LOAN DEBT DEBT SERVICE COSTS
6.2% 2.7%
8.9%8.8%
MEDICAL SCHEMES
PERSONAL TAX
SIN TAX
13c R4.76 68c9c 9cBOTTLE OF
750ML WINEBOTTLE OF
750 ML SPIRITS340ML CAN
OF BEER
CIDERS ANDALCOHOLIC
FRUIT DRINKS
BOX OF 20 CIGARETTES
FUEL & ENVIRONMENT
12CENTS PER LITRE 8CENTS PER LITRE
FUEL LEVY ROAD ACCIDENT FUND LEVY
into a preservation fund when they change their employer.
SOCIAL GRANTS
R1350 p/m R1350 p/m R830 p/m R315 p/m
THE MOST IMPORTANT GRANTS HAVE BEEN RAISED BY 6.7 %
MEDICAL SCHEMES
PENSION FUND
YOUTH EMPLOYMENT
R847 BILLION INFRASTRUCTURE
R0 - R174 550
R174 551 - R272 700
R272 701 - R377 450
R377 451 - R528 000
R528 001 - R673 100
R673 101 AND ABOVE
HOW WILL THIS AFFECT
OLD AGE DISABILITY CHILD SUPPORT FOSTER CARE
NATIONAL HEALTH INSURANCE
YOU?
INFLATION GDP GROWTH
This infographic was designed by Columinate
Brought to you by
VAT
CORPORATE INCOME TAX
FUEL LEVIES
CUSTOMS AND EXCISE DUTIES
REVENUE FROM OTHER
HEALTH & SOCIAL
OF GDP
EDUCATION
DEFENSE, PUBLIC ORDER & SAFETY
ECONOMIC AFFAIRS
COMMUNITY AMENITIES & HOUSING
EMPLOYMENT & SOCIAL SECURITY
OTHER (INCLUDING GENERAL PUBLIC SERVICES AND SCIENCE, TECHNOLOGY AND ENVIRONMENT)
PROJECTED DEFICIT
-R153 BILLION 4%( (
Total projected revenue:
R1 099 BILLIONTotal projected expenditure:
R1 252 BILLION
REVENUE EXPENDITURE
TRANSPORT, ENERGY & COMMUNICATIONS
EDUCATION, SPORT AND CULTURE
HEALTH & SOCIAL PROTECTION
DEFENSE, PUBLIC ORDER & SAFETY
LOCAL GOVERNMENT & HOUSING
3.5% 5.4% 7% 5.7% 11.8%
TAXABLE INCOME OF INDIVIDUALS IN RAND TAX PAYABLE IN RANDS
THE GROWTH IN BUDGET DEFICIT
EXPECTED TO COME DOWN TO 5.5% in 2016
EXPECTED TO ACCELERATE TO 3.5% IN 2016
FORECAST TO PEAK AT 44.3% in 2016/17 EXPECTED TO PEAK AT R139 BN IN 2016/17
R31 419 + 25% OF TAXABLE INCOME ABOVE R174 550
18% OF TAXABLE INCOME
R55 957 + 30% OF TAXABLE INCOME ABOVE R272 700
R87 382 + 35% OF TAXABLE INCOME ABOVE R377 450
R140 074 + 38% OF TAXABLE INCOME ABOVE R528 000
R195 212 + 40% OF TAXABLE INCOME ABOVE R673 100
There will be further reforms to improve governance over pension and provident funds.
A tax incentive to encourage youth employment must help to promote BEE.
There are e�orts to try and give 6 million employed South Africans who do not enjoy access to an employer-sponsored retirement plan, some form of cover.
Improvements are to be made in public sector health delivery and the high cost of private health care has to be reduced.
WILL BE SPENT ON PUBLIC INFRASTRUCTURE INVESTMENT OVER THE NEXT 3 YEARS IN ORDER TO OBTAIN MORE INCLUSIVE GROWTH AND DEVELOPMENT.
PERSONAL TAX
23.1%
20,3%
13,1%11,4%
11,4%
4,5%
16,1%
26,9%
20%
4,8%
8,2%6,3%
33,8%
A white paper on the National Health Insurance and a �nancing paper have been completed and will be tabled in Cabinet shortly.
THIS AFFECT YOU?R9.3 Billion income tax relief is being granted to households.
INCOME TAX
The amount an individual can earn before they are required to pay tax has been raised for the tax year that runs from 1 March 2014 to 28 February 2015 and it is as follows:Below age 65 - R70 700Age 65 and over - R110 200Age 75 and over - R123 350
The Old Age Grant is increased to R1 350The State Old Age Grant for people older than 75 is increased to R1 370The War Veterans Grant is increased to R1 370The Disability Grant is increased to R1 350The Foster Care Grant is increased to R830The Care Dependency Grant is increased to R1 350The Child Support Grant is increased to R315
Excise duties on alcoholic beverages (especially beer, sparkling wine and spirits) will increase by between 6.2% and 12%.There is no rise in the excise duty on traditional African beer or beer powder.The rises in excise duties are as follows:Malt beer up by 9c per 340ml canUnforti�ed wine up by 13c per 750ml bottleForti�ed wine up by 27c per 750ml bottleSparkling wine up by 62c per 750ml bottleCiders and alcoholic fruit beverages up 9c per 330ml bottleSpirits up R4.76 per 750ml bottleCigarettes up by 68c per packet of 20Cigarette tobacco up by 87c per 50gPipe tobacco up by 9c per 25gCigars up by R5.11 per 23g
To encourage individuals to save in tax-preferred savings accounts, tax exemptions for interest, dividends and capital gains will be granted for investments of not more than R30 000 per year per individual.Investments in bank deposits, collective investment schemes, exchange traded funds and retail savings bonds will be allowed to be o�ered in these savings accounts by banks, asset managers, life insurers and brokers.
Further details will be available over the next 12 months.
Lump sum payments from retirement funds are taxed using di�erent retirement tax tables from those that apply to other taxable income.The rates for these lump sums are to be adjusted to limit instances where lower income taxpayers are required to pay tax on lump sums even though they did not bene�t from a deduction for contributions to the retirement fund, because their taxable income was below the tax threshold.The adjustments will have the e�ect that a lump sum payable on retirement will be tax free if the amount is R500 000 or less.
The rebate for individual taxpayers has also gone up as follows:Primary (for all taxpayers) - R12 726Secondary (aged 65 and over) - R7 110Tertiary (aged 75 and over) - R2 367
SOCIAL GRANTS SIN TAX
ENCOURAGEMENT OF SAVING
General fuel levy will increase by 12 cents per litre and the Road Accident Fund levy will increase by 8 cents per litre from 2 April 2014.
This will push up the general fuel levy on petrol to R2.25 per litre of petrol and to R2.10 per litre of diesel.
FUEL LEVY
40% of the income tax relief goes to South Africans earning less than R250 000 per year.The tax relief has been structured to bene�t taxpayers who earn below R350 000 per year the most.56% of the tax relief will go to taxpayers who earn below R350 000 per year and 30% of the tax relief will go to the taxpayers who earn between R350 000 and R750 000 per year.
