Regardless of whether or not you’re happy with the 2019 Budget Speech, one thing is clear more effort will be required from you to live comfortably and stay on track with your financial goals. In this post, we share some highlights from the 2019 Budget Speech, and 3 top tips to help you stay on track with your financial goals in a changing economy.
Budget Speech 2019 highlights
Personal income tax
Income tax is simply the regular tax which is paid on the taxable income of an individual or business.
The Minister of Finance announced that there would be no change in personal income tax brackets for this year.
Sin tax
Sin tax is the tax imposed on alcohol and tobacco products.
The excise duty on alcohol and tobacco products will increase as follows:
– The excise duty on a can of beer goes up by 12 cents to R 1.74 2.
– A 750ml bottle of wine will have an excise duty of R 3.15, which is 22 cents more.
– The duty on a 750ml bottle of sparkling wine goes up by 84 cents to R 10.16 4.
– The duty on a bottle of whiskey will go up by R 4.54 to R 65.84 5.
– A pack of 20 cigarettes goes up by R 1.14 cents to R 16.66.
– The excise duty on a typical cigar will go up by about 64 cents to R 7.80 7.
– There will be no change to the excise duty on sorghum beer.
– Fuel levies will increase by 29 cents per litre for petrol and 30 cents per litre for diesel.
Fuel levy
The definition of fuel levy goods for tax purposes to be reviewed may include mineral ethanol, illuminating paraffin, aviation kerosene, liquefied petroleum gas, compressed natural gas – as well as biofuels such as bioethanol and biogas. –CNBC Africa
VAT (Value-Added-Tax)
Last year, VAT increased by one percentage point to 15%. There will be no increases in VAT this year.
Download a PDF copy of the 2019 Budget Speech here for more information.
Top tips to help you stay on track with your financial goals
– Make saving a priority
Make saving money a priority, the same way our bond and car payments are. Speak to one of our financial advisers free of charge to come up with a tailored savings plan that suits your needs.
– Take advantage of all the discounts available to you
Did you know that SnapnSave is one of our partners and that Multiply members qualify for an additional 10% cashback on top of the cash they get back on SnapnSave (except on alcohol and tobacco products)?
– Shop online
Buy your groceries online, instead of in-store to minimise the chances of impulse purchases. If you want to save even more, opt to collect your order from the store instead of having it delivered to eliminate delivery fees.
You might also want to read this post: 5 ways to survive the VAT increase.
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