Finance Minister Pravin Gordhan's proposed 2012/2013 budget surpasses the R1-trillion rand mark for the first time ever. Tabling his budget in parliament on Wednesday, Gordhan said the bulk of the 1.06 trillion rand budget, or 615-billion rand earmarked for social services.
Fuel
The general fuel levy will increase by 20 cents a litre of petrol and diesel from April 4, Finance Minister Pravin Gordhan announced in his new budget on Wednesday. An increase in the Road Accident Fund levy would add a further eight cents to the price of a litre of fuel, he said. The levy on electricity generated from non-renewable sources would increase by one cent a kilowatt hour on April 4. This levy would replace the current funding mechanism for energy-efficient initiatives such as the solar water geyser programme. Gordhan said the electricity levy would likely have little overall impact on tariffs.
Alcohol and tobacco
Smokers will have to fork out 58 cents more for a packet of 20 cigarettes, Finance Minister Pravin Gordhan announced in his 2012/13 Budget on Wednesday. Drowning one's sorrows in alcohol will also cost more, with a 750ml bottle of spirits set to increase by a hefty R6, a 340ml can of beer by nine cents, and a litre of wine by 18 cents, he said. Higher so-called "sin taxes" will also affect the very rich or those who splurge on boats and planes.
Personal income tax - some relief
Finance Minister Pravin Gordhan has proposed personal income tax relief of R9.5 billion for 2012/13, as well as a number of other tax proposals. Tabling his budget in the National Assembly on Wednesday, Gordhan said that as from March 1, a tax credit for contributions to medical schemes would be introduced at a rate of R230 a month for the first two beneficiaries and R154 each for additional beneficiaries. Taxpayers 65 years and older and people with disabilities would be included in the second phase of this reform, which would be implemented in 2014.
Relief for disabled and elderly
There was little for the elderly and the disabled to cheer about in Finance Minister Pravin Gordhan's Budget speech on Wednesday. Pensioners over the age of 75 and people with disabilities would see a R60 increase in their monthly government grant in the coming year, he said in the National Assembly. "The monthly state old age pension and the disability and care dependency grants will rise, by R60 a month, to R1,200, or R1,220 for pensioners over the age of 75," Gordhan said.
Social welfare priorities for the year included early childhood development programmes and the Isibindi childcare and protection programme, he said.
These were initiatives which had strong community-based employment benefits and would be allocated an additional R1.4 billion over the medium term, or next three years. Gordhan said foster care grants would increase by R30, to R770.
The child support grant would increase to R280. He said National Treasury was "mindful" that these increases
could be reassessed if inflation continued to rise. (Sapa)
To download the full Budget Speech click below:
