While Chris Liebenberg announced the long awaited=20 scrapping of the discriminatory tax on married women,=20 he said child rebates would be abolished.=20
However, to lessen the burden on lower income earners,=20 who are most affected by the loss of the child rebate,=20 the primary rebate would go up by R400.
The middle classes were the hardest hit by the Budget,=20 with the maximum marginal tax rate for individuals=20 earning R80 000 or more increasing to 45 percent from=20 last year’s 43 percent.
Tax advantages for individuals who moved to the former=20 TBVC states, to fall under tax havens, are to be=20
These individuals will now fall under the same tax laws=20 as the rest of South Africa with backdated effect from=20 March 1 this year.=20
However, companies would only begin paying full South=20 African taxes from March 1996.=20
Until then they would pay an average of tax determined=20 under both laws, but the tax-free status of Ciskei=20 companies would be honoured.
In addition, the minister announced a general tax=20 amnesty for all individuals and businesses not=20 registered as taxpayers before the April 1994 election.=20
Details relating to the tax amnesty would be made=20 before parliament.
Other individual and company tax news related to the=20 date by which the third provisional tax payment would=20 have to be made.=20
The minister said that the date would be extended by=20 one month for individuals, and companies with February=20
In his 1995/96 Budget speech, he said provisional tax=20 payments, as provided for in the Income Tax Act,=20 resulted in a bunching of payments in August.=20
This increased the workload of the individuals and=20 companies concerned, as well as the tax authorities.=20 The new measure is expected to alleviate that workload.