Mar 2013

The Budget 2013 – blues or bonus?

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The BUDGET. Yip in capital letters. When Pravin Gordhan tells us how much moolah we’re going to be left with after paying our tax. That’s if we understand half of what he’s said! We got our number boffins to explain the ups and down of the 2013 budget, in simple, straightforward English instead of Financialese. Check it out.

Let’s start with the stuff that applies to the party animals and the drivers and the shoppers out there…

  • Tax on cigarettes is going up by 60c
  • Tax on a 340ml can of beer is going up by 7.5c
  • Tax on a bottle of wine increases by 19.5c
  • Tax on a bottle of spirits increases by R3,60
  • An increase of 23c/l on the fuel and road accident fund levies
  • The levy on plastic shopping bags will go up 2c
  • The levy on incandescent light bulbs will increase by R1
  • The tax on motor vehicle carbon dioxide emissions is also going up

But enough of that! There was also some good news.

  • Personal income tax is going down - YES! It’s nothing major – between R640 to R3 015 a year depending how much you earn, but hey… every bit helps! If you’re under 65’s earning R67,111 or less a year won’t pay tax. Nice.
  • If you’re a saver, good! You can invest R1 515 183 at 6% interest, tax free.
  • The monthly tax credit for medical aid contributions is R242, R484 on the first dependent and R162 for each additional dependent. You can also deduct out of pocket medical expenses for yourself and family members that you support. That’s a healthy saving.
All in all, no radical changes, but with fuel costs on the up, you may want to chill on the partying, recycle those shopping bags, switch off lights and if you’re in the market for new wheels, get a car with low carbon emissions!
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