The following is a summary of the tax related budget proposals announced by the Minister of
Finance on 26 February 2014.
Budet Highlights:
The main tax proposals for 2014 include the following:
- Adjustments to tax tables relating to retirement lump-sum payments.
- Tax breaks to encourage household saving.
- Measures to encourage small enterprise development.
- Clarity on valuation of company cars for fringe-benefit tax purposes.
- Government proposes an increase of 12c/litre in fuel levy and an increase of 8c/litre on the Road Accident Fund levy. The effective date for both levies is 2 April 2014.
- Reforms to tax treatment of the risk business of long-term insurers.
- Amending rules for VAT input tax to combat gold smuggling.
- Measures to address acid mine drainage.
- Postponement of carbon tax to 2016 in order to ensure its alignment with desired emission-reduction outcomes identified by the Department of Environmental Affairs.
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