Lego Batman may have toppled 50 Shades Darker at the box office, but Lego Pravin Gordhan may give the wealthy vigilante pause for thought with a budget that raises taxes on the rich.
Yesterday Gordhan announced a tax hike aimed at filling a R28-billion hole in the state's finances.
The hike will hit the rich particularly hard, including President Jacob Zuma, whose R2.87-million a year salary crosses the threshold of the new R1.5-million a year tax bracket and its marginal 45% rate.
Joining him - and the 100,000 other South Africans estimated to fall into the new super-tax bracket - will be:
- Deputy President Cyril Ramaphosa and National Assembly Speaker Baleka Mbete with state salaries of R2.7-million each;
- Cabinet ministers, including Gordhan, who earn R2.3-million;
- Deputy ministers, on R1.9-million; and
- Provincial premiers, on R2.1-million.
With the economy stuttering and revenue collection falling, the increase is part of a string of hard-hitting increases in personal income tax intended to raise R16.5-billion in the 2017-2018 financial year.
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EINA! Tax hikes will hurt but fatcats will feel pinch too South Africans reeling from the tax hikes announced yesterday to fill a R28-billion hole in the state's finances should take comfort in that they are not alone - the president, his cabinet and the rich in general will have to endure the pain, too. Gordhan's shot in the arm for lower-end property market First-time homebuyers could find themselves thanking Finance Minister Pravin Gordhan‚ with analysts anticipating more people could join the property market following an adjustment in the transfer fee threshold. Praise all round for Gordhan Finance Minister Pravin Gordhan had walked a difficult road but has produced the best Budget possible, said opposition parties and analysts yesterday. Treasury saves tax payers billions Delivering his Budget yesterday, Finance Minister Pravin Gordhan said the bill for a 7500m² school had been cut from R70-million to R34-million after discussions between the Treasury's chief procurement officer, Ken Brown, and the Department of Basic Education on "cost-effective standards for building design". Budget 2017: Bittersweet reaction to Gordhan’s remarks on sugar tax Finance Minister Pravin Gordhan's promises to have further consultations before the sugar tax is implemented has industry delighted. Budget 2017: 'Harsh times ahead'‚ says Geffen Lew Geffen‚ chairman of property firm Lew Geffen Sotheby’s International Realty‚ says anyone still viewing the country’s medium term economic outlook through rose-tinted spectacles had them rudely ripped off by the Finance Minister on Wednesday. Budget 2017 commentary: 'Gordhan should be praised' Dr Kenneth Creamer‚ Economist at Wits University on the 2017 Budget Speech delivered by the Finance Minister Pravin Gordhan today.