budget speech highlights
23 February 2007
Highlights of Finance Minister Trevor Manuel's 2007/08 Budget, tabled in Parliament:
Net tax relief of R12.4-billion;
Personal income tax relief for individuals of R8.4-billion;
Replacement of secondary tax on companies with a dividend tax and reduction in the rate from 12.5 percent to ten percent;
Abolition of retirement fund tax;
Wage subsidy by 2010 to combat youth unemployment and facilitate social security reform;
Increased exemption for interest income;
Increased tax-free medical aid contributions;
Basic exemption for estate duty adjusted for individuals from R2.5-million to R3.5-million;
Donations tax adjusted from R50 000 to R100 000;
Ad valorum excise duties on certain items eliminated, including dishwashers, sunglasses, and some cameras and projectors;
Tax on 20 cigarettes up by 60 cents;
Tax on a can of beer up by five cents;
Tax on a bottle of wine up by ten cents;
Fuel taxes up by ten cents a litre.
Extra allocations over the next three years include:
R13.3-billion for the 2010 FIFA Soccer World Cup, bringing national government's contribution to R17.4-billion;
R8.4-billion for stadiums and R9-billion for municipal transport infrastructure;
Provincial equitable share of R24.6-billion to improve health care, education, welfare and economic services;
R5-billion for local government to support free basic services delivery;
R8.1-billion for teacher salaries, hiring extra teachers and staff;
R4.6-billion for teacher bursaries, curriculum development and an increase in higher education subsidies;
R11.6-billion for housing and community development;
R3.7-billion for HIV/Aids and modernising hospitals;
R2.4-billion for industrial development, science and technology;