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Category:
South Africa
2006 Budget
Main points of the
2006 Budget
R446.4 billion revenue
R472.7bn expenditure
R13.5bn in personal income tax relief
People earning less than R40 000 a year, as well as taxpayers over the
age of 65 who earn less than R65 000 a year, will not pay tax
Maximum marginal tax rate remains at 40 percent, while the threshold is
raised from R300 000 to R400 000
Retirement fund tax reduced from 18 percent to nine percent at a cost of
R2,4-billion
Annual turnover threshold to qualify as a small business corporation
raised from R6 million to R14m
Tax amnesty for small businesses with turnover of R5m or less who are
not tax compliant, starting with the taxi industry
No
increase in general fuel levy
Transfer duty relief of R4.5bn, from March 1. Housing costing
less than R500 000 will attract no duty
Tax on the medical aid subsidy to change to benefit low-income families
Road Accident Fund (RAF) levy on fuel up by 5c a litre
R2.7bn to relieve the cash flow crisis in the RAF and to help address
backlogs in settling claims
R2bn capital investment in Denel to help it restructure and become
solvent and profitable
Up
to R5bn to be spent on dedicated World Cup infrastructure, of which R3bn
is set aside over the next three fiscal years
R7bn tax relief from the abolition of the Regional Services Council levy
Tax allowances for learnerships extended to 2011 and increased at an
estimated cost of R80m. A more favourable allowance to be introduced
from July for the additional expenses associated with employing disabled
people as learners
R7.1bn to the Gautrain rail project
R3.5bn on national roads and rail infrastructure
R80.6bn for welfare and social security
R92.1bn for education
R54.5bn for health
R88.6bn for economic services
R9.2bn for housing
R25.6bn for community development
R34.7bn towards transport and communication
R79.6bn for protection services such as police, justice and defence
A
packet of 20 cigarettes will cost 52c more, a 340ml beer can will cost
5c more and spirits will cost R1.54 more per 750ml bottle.
No
changes to the tax on traditional beer and beer powder
R4bn for early childhood development and workers in social welfare,
community health and home-based care
Old age pensions, disability grants and care dependency grants increase
by R40 to R820 a month, foster care grants by R30 to R590 and child
support grant by R10 to R190
There had been 42 672 applications for exchange control and tax amnesty,
with R68.6bn in foreign assets disclosed, Manuel reported.
Source:
Business Report February 2006
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