The Minister of Finance, Mr Pravin Gordhan, delivered his budget speech to Parliament
on 23 February 2011. In this Tax News Flash we highlight certain economic data tabled as part of the Budget Review and the tax proposals included in the Budget Review.
Download the Tax News Flash - Budget 2011 Edition (PDF)
This year's budget has generally been positively received. There have been several highlights and interesting outcomes worth mentioning including Government proposing that with effect from 1 April 2012, all gambling winnings above R25 000, including those from the National Lottery, be subject to a final 15% withholding tax. Similar gambling taxes exist in India, the Netherlands and the United States.
Government expects that the National Health Insurance (NHI) will be phased in over 14 years. While initial allocations have been made in the 2011 Budget, the NHI system will require funding over and above the current revenues allocated to public health.
Preliminary analysis indicates that the phasing in of a payroll tax (payable by employers), an increase in the VAT rate and a surcharge on individuals' taxable income could be considered as funding options. The feasibility and practicality of co-payments or user charges will also be explored. Announcements about specific funding instruments will be made in the 2012 Budget.
Visit our Hot Topics page to read more key changes in the 2011 Budget.