South Africans can look forward to personal income tax relief of R9.3 billion, while reform of the tax regime will ease the compliance burden for small businesses.
Sin taxes go up, as usual, as does the fuel levy, while social grants have been bumped up (marginally less than aspirant president Julius Malema had promised his supporters).
Finance Minister Pravin Gordhan has presented a no-shocks Budget for the coming year but, due to the low economic outlook, has imposed an expenditure ceiling, binding for the next three years.
There were no big bang announcements in Minister Pravin Gordhan’s 2014 Budget, but there was a word of caution that South Africa needs to “live and spend modestly” due to the economic climate. Presenting the Budget for President Jacob Zuma’s outgoing administration, Gordhan said growth was expected to be 2.7% this year and the weaker exchange rate was a risk to the inflation outlook.
“Despite slower economic growth, the 2013/2014 budget deficit is projected to be 4% of GDP, lower than projected in October,” Gordhan said.
Speaking at a media briefing ahead of his speech in Parliament, Gordhan said the Budget would be binding on government for the next three …