Acts Online
GT Shield

Budget Speech 2015

Tax proposals



The 2015 Budget tax proposals aim to increase tax revenues as required, limit the erosion of the corporate tax base, increase incentives for small businesses and promote a greener economy.


The main tax proposals are as follows:


Personal income tax rates will be raised by one percentage point for all taxpayers earning more than R181 900 a year. This raises tax by R21 a month for a taxpayer below age 65 with an annual income of R200 000. Those earning R500 000 will pay R271 a month more, and at R1.5 million a year the tax increase is about R1 100 a month. However, tax brackets, rebates and medical scheme contribution credits will be adjusted for inflation, as in previous years. The net effect is that there will tax relief for those earning below R450 000 a year, while those with higher income will pay more tax.


Honourable Members, an increase in the general fuel levy of 30.5 cents a litre will take effect in April.


Following recommendations of the Davis Tax Committee, a more generous tax regime is proposed for businesses with a turnover below R1 million a year. Qualifying businesses with a turnover below R335 000 a year will pay no tax, and the maximum rate is reduced from 6 per cent to 3 per cent. To complement this relief, SARS is establishing small business desks in its revenue offices to assist in complying with tax requirements.


The rates and brackets for transfer duties on the sale of property will be adjusted to provide relief to middle-income households. The new rates eliminate transfer duty on properties below R750 000, while the rate on properties above R 2.2 million will increase.


Fellow South Africans, excise duties on alcoholic beverages and tobacco products will again increase as follows:


1) the tax on a quart of beer goes up by 151/2 cents,


2) a bottle of wine will cost 15 cents more,


3) a bottle of sparkling wine goes up by 48 cents,


4) a bottle of whiskey will go up by R3.77; and


5) a pack of 20 cigarettes goes up by 82 cents.


Amendments are proposed to the diesel refund system which applies in the agriculture, forestry, fishing and mining sectors. Some of these changes will take effect this year and some in 2016.


The net effect of these proposals on 2015/16 tax revenue is an increase of R8.3 billion, which will bring tax revenue for the year to slightly more than R1 trillion, or about 10.4 per cent more than 2014/15 tax revenue.