Budget highlights and Lowlights
- R85 billion in spending reductions,
- Revenue measures to raise an additional R36 billion in 2018/19 by increasing VAT to 15%, and other taxes
- Additional spending to fund free higher education of R57 billion over the medium term.
- A provisional allocation in 2018/19 of R6 billion for drought management, assistance to the water sector, and to improve the planning and execution of national priority infrastructure projects.
- Cut of R1.7bn in industrial incentives
- The Carbon tax will be implemented from 1 January 2019.
- Higher duty rate on luxury goods from 7 percent to 9% – on goods that are consumed mainly by wealthier households, such as cosmetics, electronics and golf balls.
- Excise duty for motor vehicles will be increased from 25 percent to 30 percent.
- A higher estate duty tax rate of 25 percent for estates greater than R30 million
- The 2017 GDP growth projection has been revised upward to 1 percent, which is higher than the 0.7 percent in October last year.
- The sale of state-owned properties with an estimated value of over R40bn.
- The plastic bag levy is to be increased by 50 per cent to 12 cents