Budget 2016: Ten things you need to know

Budget 2016: 10 things you need to know

The budget for 2016 has been tabled, but do you know how it affects you?

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Words like deficit, fiscal and expenditure were used, but without a background in economics, it might not mean much to most South Africans.

Finance Minister Pravin Gordhan delivered his budget speech in Parliament on Wednesday afternoon.

We have listed the Top 10 things you need to know.

1.  Economic growth will slow down even further - to 0.9% - which is not nearly enough to create jobs. 

2.  There will be two new taxes to pay - one on fizzy drinks and one on tyres for your car. The general fuel levy rises by 30c/l. 

3.  At least you won't be paying more income tax. In fact R5.5 billion rand in tax relief was announced for lower and middle-income earners

4.  The wealthy will have to spend more on tax, with a hike in capital gains tax and transfer duty on expensive houses. 

5.  Increases of 6%-8.5% in the duties on sin tax (alcoholic beverages and tobacco products)

6.  Government will tighten its belt. Departments and provincial governments will not be able to make new hires, unless approved. Cheaper vehicles and less glamorous parties are in the pipeline

7. Loss-making SAA and SAA Express could be merged to save money. 

8.  Social grants for the poorest of the poor was increased to keep up with inflation. 

9. Government's nuclear plans barely featured - prep work is continuing. 

10.  Higher Education will receive an additional R16 billion following #FeesMustFall.

Edited by Marius van der Walt

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