Ordinary South Africans — except those who are heavy smokers and drinkers — will be walking with a spring in their step after Wednesday’s Budget.
Following the pattern set in previous budgets, Minister of Finance Trevor Manuel has again wooed individual taxpayers with tax relief that will this year allow them to hang on to R13,1-billion.
He also announced what he said are ”modest” increases in the old-age, disability and other social grants that go to about 10-million beneficiaries — and provide a livelihood to even more.
And for those at the other end of the social spectrum, he said tax on retirement funds will be halved from 18% to 9% with effect from March 1.
The bad news for smokers is a 52c increase in the price of a packet of cigarettes, thanks to a 10% hike in tax.
Drinkers have all the more reason to drown their sorrows at the news that excise duty on wine rises by 12,5%, spirits by 9,5% and beer by 9%.
Manuel said there will be no increase in the general fuel levy, but motorists will be paying an additional 5c a litre towards the Road Accident Fund.
Good news for would-be homeowners is that Manuel has scrapped transfer duty on houses costing less than R500 000.
”I know that this will be welcome relief to all home buyers, and especially first-time entrants to the property market,” he said.
And Manuel had reassuring long-term news for those who have to pay the monthly grocery bills: consumer price inflation is expected to average about 4,5% a year over the next three years. — Sapa