Wednesday, February 17, 2010

2010 Budget Speech

New Finance minister Pravin Gordhan has delivered his maiden budget speech.

The 2010 budget speech has come and gone. Like most people, I would agree that it does not make the most interesting reading, but it does affect each and everyone of us.

We have saved all the pain of trying to see what is in store for the year ahead, and hi-lighted the most salient points in the Minister's speech.

From a property perspective, there is no change to current transfer duty rates nor any additional taxes or rebates on property.

Moderate relief on income tax has been granted as well as a small increase in the primary tax rebate to R10,260.00 per annum.

Those who enjoy smoking and drinking however will feel the heat as taxes on cigarettes and alcohol have been increased significantly. A further disappointing item in the budget speech is an increase of 22.5 cents per litre in the fuel tax, a large portion of this going to fill a seemingly bottomless pit that is the Road Accident Fund.

Overall, the budget showed no major reforms, and the additional taxes on fuel with electricity hikes enroute mean that it will be a tough year for South Africans. Wise investing and tight budgeting will be the order of the day.

Mc Naught and Company are fully equipped to advise you on the most tax efficient practices for the coming year as well as to ensure that you are fully protected in any business dealings you may get into.

Book your consultation here.

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