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What today's budget means for you

by , 25 February 2015

Earlier today, finance minister Nhlanhla Nene gave his first full budget speech.

So what impact will today's budget have on you and your pocket?

Let's take a closer look…


The fuel price will rise 80.5c thanks to levy hikes


Over recent months, motorists have benefitted from the falling oil price. This has resulted in significant cuts to the fuel price. But the finance minister took advantage of this in today’s budget.

The fuel levy is to rise 30.5c a litre and “the levy for the Road Accident Fund” will rise 50c a litre, says Fin24. This brings the “general fuel levy to R2.55/litre for petrol and R2.40/litre for diesel”. At current fuel prices, that makes up around 26% of the price.

These higher levies come into effect from 1 April, notes IOL.


Personal income tax is rising


Mr Nene targeted medium- to high-earners with his changes to personal income tax.

Taxpayers who earn in excess of “R181,900 a year will pay 1% more in tax,” reports BDLive. That translates into around R9.4 billion to the government.

The majority of this will go back to “those earning less than R450,000 a year in the form of an inflation adjustment in the tax bracket, as well as rebates and medical scheme contributions,” adds BDLive.


Electricity will cost more


The finance minister also proposed an increase in the levy on electricity, says MoneyWeb. This would rise “from 3.5c/kWh to 5.5c/kWh”.

This will only be in place over the short-term, notes BDLive. Next year, the “introduction of carbon tax” will replace this hike.


Sin taxes are also up


If you’re a smoker or a drinker, you can also expect to pay more.

A packet of 20 cigarettes will cost 82c more, notes iAfrica.

Beer, wine, sparkling wine and spirits will also rise in price, adds MoneyWeb. The increases range from 4.8% to 8%.

So that’s the main things from the budget that will have an effect on your pocket.

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What today's budget means for you
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