On 20 February 2008 the South African Minister of Finance delivered his national budget speech, which was accompanied by the release of a number of informative documents.
Despite these turbulent and uncertain times the speech was refreshingly upbeat and positive. In fact, the Minister announced net tax relief of R10.5 billion, after which the projected budget revenue for the 2008/9 fiscal year is R635 billion, which is 12.1% higher than the 2007/8 revised estimate.
As usual the budget produced its surprises, such as the introduction of a new tax – an energy levy on the sale of electricity generated from non-renewable sources – and a cut in the company tax rate from 29% to 28%.
In this publication we outline the more significant tax proposals and likely future tax changes, many of which still have to be discussed, considered and fleshed out. It remains an outline, selective, brief and not too technical, so no action (or inaction) should be based solely on it.
Customs and excise proposals are not covered.
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