2010 Tax Related Budget Proposals
The following is a summary of the tax related budget proposals announced by the Minister of Finance on 17 February 2010.
Budget Highlights
The main tax proposals include:
Personal income tax relief for individuals amounting to R6.5bn. This partially compensates for inflation.
- Limited voluntary disclosure option for taxpayers in
default
- Exchange control reforms proposed
- Interest-income exemption increased to R22 300 per year
and to R32 000 for those over 65
- Standard Income Tax on Employees (SITE) system to be
discontinued
- Carbon Dioxide Emission taxs of R75 per g/km for
each g/km above 120g/km to be introduced on new
Passenger Vehicles from 1 September 2010
- Customs and Excise on Alcoholic Beverages to increase
by between 8.1% to 8.9%
- Customs and Excise on Tobacco products to increase by
between 6.2% and 16.1%
- Fuel Levy increased by 17.5c per litre
- Road Accident Levy to increase by 8c per litre
- Portion of Travel Allowance subject to PAYE increases
from 60% to 80% from March 1 2010
- Deemed kilometer method for deducting travel
expenses falls away from March 1 2010.
- Gambling winnings being exempt from personal income
tax to be reviewed - impacts on casino, online gambling
and lotto winners
