Financial services group Old Mutual has published a new assessment on how South Africa’s new taxes will impact your personal finances next month.
South Africans are preparing for a host of new tax measures that will take effect from 1 April 2018 – with the VAT hike to 15% set to make the biggest impact on day-to-day finances.
On top of a rise in shelf prices of consumer goods because of VAT, a rise in fuel levies, sin taxes and new ‘health promotion’ taxes are also going to kick in.
In a more in-depth analysis from Old Mutual, the financial group breaks down how VAT increases will affect your various financial policies, and goes in depth on how other tax measures, like the the new estate duties, will come into play.
Key among the finer financial assessments, however, the group published tables on how your monthly and annual salary will be affected by the new tax brackets announced at the end of February.
Income Tax change
While no changes were announced to marginal tax rates, the impact of fiscal drag means that incomes will reduce after inflation is taken into account.
The tables below show the impact for South African taxpayers based on different income levels, including the % reduction which can be compared to inflation to understand the real impact.