HIGHLIGHTS OF THE 2010/2011 BUDGET SPEECH

Minister Pravin Gordhan delivered the 2010/2011 budget speech yesterday. We bring you the highlights:

• There is no change to the Transfer Duty rates that are payable in respect of property transactions.
  
  
• Individual`s tax free income threshold is increased.  If you are younger than 65, the threshold is increased from R21000 to R22300 and for those older than 65 years, it is increased from R30000 to R32000.
  
  
• From 1 September 2010 onwards, new passenger vehicles will be charged a carbon emissions tax. Therefore, the more fuel efficient your new car is, the less tax you will pay.
  
  
• Tax on fuel will be increased to 25.5 cents a litre.  (This includes a 7.5 cents a litre increase to contribute to  funding of a new petroleum pipeline between Durban and Gauteng and an increase of 8 cents a litre towards the Road Accident Fund levy).
  
  
• Sin taxes are increased: Tobacco and alcoholic products will cost you more in the new financial year.
  
  
• R89 billion will be spent on social grants in 2010/2011.  Provision has been made for the phased extension of the child support grant up to a child`s 18th birthday.  Old age pension and disability amounts are increased with R70 to R1080 a month.  The child support grant is increased with R10 to R250 a month.