Page 4 - Nexia Cape Town 2018 TG Digital

2018/19 BUDGET HIGHLIGHTS

■ A one percentage point increase in VAT to 15% with effect from 1 April 2018
◆ The VAT increase will result in additional R22�9 billion to the fiscus
■ No adjustments to the top four income tax brackets for individuals
■ Below inflation adjustments to the bottom three brackets for individuals
■ Plastic bag levy to be increased by 50% to 12c per bag with effect from
1 April 2018
■ Fuel taxes increased with effect from 4 April 2018:
◆ A 22c/ℓ increase in the general fuel levy
◆ A 30c/ℓ increase in the Road Accident Fund
■ Higher ad valorem excise duties for luxury goods with effect from 1 April 2018
◆ e�g� Motor vehicles will be increased from 25% to 30%
■ Increased estate duty with effect from 1 March 2018:
◆ To be levied at 25% for portion of estates above R30 million
◆ Consequently, donations in excess of R30 million will also be taxed
at 25%
■ Carbon Tax to be implemented 1 January 2019
■ Health promotion levy (sugar tax) will be implemented with effect from
1 April 2018
■ Minister of Finance to approve six special economic zones for additional
tax relief
■ Proposals:
◆ Increase “official rate of interest” to a level closer to the prime rate of
interest
◆ Remove fringe benefit tax for preferential interest rates on low-cost
housing loans to qualifying employees

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