On Thursday 20 February 2019, Finance Minister, Tito Mboweni, delivered his budget speech in Parliament with no increases in personal or income tax. However, according to the finance minister, this is where we will see tax hikes:
Sin tax: These will be the following tax increases in tobacco and alcohol beverages:
Can of beer: 12c increase to R1,74
750ml bottle of wine: 22c increase to R3,15
750ml bottle of sparkling wine: 84c increase to R10,16
Bottle of whisky: R4,54 increase to R65,84
A packet of cigarettes: R1,14 increase to R16,66
Cigars: 64c increase to R7,80
Fuel levies: Mboweni also revealed that, unfortunately, there will be an increase in fuel levies:
Petrol: 29c per litre
Diesel: 30c per litre
Is your financial house in order?
With price hikes due to the increase in sin tax and fuel levies, there is no better time than now to do the following to get your financial house in order:
– Submit your personal income tax as soon as tax season opens : You can speak to an expert to do your income tax submission; however, for most individuals, SARS e-filing is simple enough to do a personal tax submission.
– Compile a budget and stick to it : Make sure that you are diligent when compiling a budget by taking all your income and expenses into account and make sure that you stick to your budget every month. Here is a short video to help you compile a budget: http://bit.ly/2Niy1dl.
– Save, save, save : Saving is at the core of financial wellness. Thus, make sure that you have discipline when it comes to saving and budget properly in order to save every month. Here is a short video to show you how: http://bit.ly/2DXM0B0.
– Manage your debt : For most of us living debt free seems nearly impossible. That is why it is essential to manage your debt responsibly. Find out how: http://bit.ly/2GC1XR1.
– Get educated : Iemas offers free financial workshops at all its participating employer groups to assist you on your journey towards financial wellness. Contact us today to find out more: 0861 043 627 or visit www.iemasfinancialservices.co.za