It is great to see that an additional R12.2 billion will be spent on child support grants, and an extra R15.1 billion for teachers (that could be nine or twelve zeros for a billion - nine I presume) but what does that mean to me and you. R12.2 billion sounds much better than an in increase of 4.17% or R10 per month for each child support grant - not even keeping up with inflation!
- There is not enough relief in personal income tax to counter the effects of inflation - unless you earn less than R90,000 per year. According to Statistics South Africa, the official inflation rate at for December 2009 was 6,3%. Tax payers earning more than R100 000 received 6.1% or less relief meaning in reality, you are paying more tax.
- The discontinuation of the SITE will marginally simplify your payslip but not much else...
- The 25.5 cents increase in fuel taxes will have a knock on effect on household disposable income with many retailers passing the additional transport costs straight on to you and me.
- A packet of 20 cigarettes will cost R1.24 more, thats an extra R37.20 per month for those pack-a-day people.
- A 750 ml bottle of wine will cost 12 cents more
- A 340 ml can of beer will cost 6.5 cents more
- A 750 ml bottle of spirits will cost R2.22 more
To see what the effect is on your tax home pay, go to The Tax Calculator
For a more detailed look at the highlights of this years budget click here (pdf file 118kb)
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