Weekly Review is designed to provide you with an overview of the previous week’s markets and an

insight into the current risks and investment strategies. Weekly Review is a STANLIB Multi-Manager publication and
is for internal use only.

Summary of 2009 Budget Speech

CAPITAL GAINS TAX

PERSONAL TAX
The 2009 budget provides tax relief of R13bn to
individuals to counter the effects of inflation
This means people under 65 years of age will be
affected as follows:
 Those earning a total amount of R60 000 will
be taxed to an average rate of 1.7% - saving
R1 476.
 Those earning R200 000 will be taxed at an
average rate of 15.5% - saving R2 426.
 Those earning R750 000 will be taxed at an
average rate of 31% - saving R5 526.
The tax threshold for individuals younger than 65
will be R54 200, and R84 200 for those older than
65.
CORPORATE TAX
No changes were proposed for corporate tax rates.
There was a break for entrepreneurs as the value-
added tax (VAT) registration threshold was raised
from R300 000 to R1m.
The annual exclusion threshold for capital gains tax
(CGT) increases from R16 000 to R17 500.
SIN TAXES
Drinkers will pay more for their favourite tipple with
excise duties increasing across the board. Beer is up
7c to 79c per 340ml can, wine by 14c to
R1.98c/litre, fortified wine by 32c to R3.72/litre and
spirits by R3.21 to R25.05 per 750ml.
Smokers also have to cough up more with excise
duties on a pack of 20 rising 88c to R7.70c.
FUEL LEVY
There was a double whammy in the budget for
motorists, who have only recently started to feel
the benefits of the markedly lower crude oil price.
The fuel levy on petrol will increase by 23c to
R1.50/l and by 24c to R1.35/l for diesel ion April 1
this year. But on the same date the Road Accident
Fund levy on petrol and diesel increases by 17.5c to
64c/l.

TAX ON INTEREST AND DIVIDEND INCOME

The annual exemption on interest earned for

people younger than 65 years has been raised from
R19 000 to R21 000. For individuals over 65 the
threshold increases from R27 500 to R30 000. For
interest and dividends from foreign investments,
the exemption level has been raised from R3 200 to
R3 500.
 Weekly Review is designed to provide you with an overview of the previous week’s markets and an
insight into the current risks and investment strategies. Weekly Review is a STANLIB Multi-Manager publication and
is for internal use only.

ENVIRONMENT THE ECONOMY

The budget proposes reducing the current ad
valorem excise duty on the sale of new motor
vehicles, opting to introduce an additional excise
duty component to take into account carbon
dioxide emissions.
· A budget deficit of 3.8% in 2009/10, before
recovering to 1.9% by 2011/12;
· GDP growth projected at 1.2% in 2009 (before
recovering to 4% by 2011);

Other environment taxes will see an increase in the · Inflation to fall to 5.8% in 2009;
plastic bag levy to four cents a bag and an
introduction of a charge of about R3 on energy- · Over R780bn of public infrastructure spending
intensive light bulbs. planned for next five years; and

The international air passenger departure tax will · Real growth in consolidated government spending
increase to R150 and R80 in the case of flights to (excluding interest) of 5.1%.
Botswana, Lesotho, Namibia and Swaziland.

SPENDING

The main areas in the budget that receive more

money are:

 R12bn more for social grants;

 R45bn more for provinces to improve
education, health, roads and rural
development;
 R10.9bn more for housing, water, sanitation
and municipal services;
 R5.4bn more for improving the criminal
justice sector (including an overhaul of the
fingerprint and DNA databases);
 R6.4bn more for public transport, national
roads and rail infrastructure.

Source: News 24, 11 February 2009