WATCH: Lego Pravin Gordhan gives budget speech

23 February 2017 - 12:41 By TimesLIVE
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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.

READ MORE:

  • EINA! Tax hikes will hurt but fatcats will feel pinch tooSouth 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 marketFirst-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 GordhanFinance 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 billionsDelivering 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 taxFinance Minister Pravin Gordhan's promises to have further consultations before the sugar tax is implemented has industry delighted.
  • Budget 2017: 'Harsh times ahead'‚ says GeffenLew 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. 
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