South Africa’s Prices Soar: See How We Did The #10YearChallenge

The government is making plans to review the definition of fuel levy goods to include biofuels in the payment of RAF and fuel levies

Woman pumping petrol at gas station into vehicle.
Woman pumping petrol at gas station into vehicle. Krasula / Shutterstock.com

Everyone’s feeling the pinch in 2019 and this is just the start. Are your expenses increasing, are you getting less for your money and your salaries are staying the same?

South Africa’s #10YearChallenge

 

 

Government expenditure in 2019 is expected at R1.83 trillion, of which the majority (R1.1 trillion) will go to social services.

State salaries and compensations remain the largest expenditure category, accounting for 34.4% of consolidated expenditures – the level defined by the Minister of Finance as “unbalanced”. There are measures to implement spending cuts of R27 billion, he said. However, a lot of this will be undone by the cost of rescuing Eskom from death.

It looks like we are in for a treat over the next couple of years:

 

Fuel charges have increased by 29 cents per litre for gasoline and 30 cents for diesel. The general fuel Levi has been increased by 15 cents per litre on 3 April 2019. The fee for road accident fund has been increased by 5 cents per litre on 3 April 2019. The carbon fuel levy of 9 cents per litre for petrol and 10 cents per litre for diesel fuel has been introduced from 5 June 2019.

With the increases announced in the Budget Speech – including the carbon dioxide tax – the fees have increased by 29 inches for petrol and 30c for diesel, we will pay R5.63 and R5.49 in taxes per litre for petrol and diesel, respectively. This means that if you drive a vehicle with a 50-litre tank, you pay about R281.50 (petrol) or R274.50 (diesel) extra in tax, each time you fill up.

Taxes…More and More Taxes

Increases in alcohol and tobacco excise duties will raise the revenue of R1 billion – through a 7.4% and 9% increase. The sugar tax has been increased to account for inflation, moving from 2.1 cents per gram in excess of 4 grams of sugar per 100ml to 2.21 cents from 1 April 2019.

New Taxes

– The government will review the ad valorem excise duty on motor vehicles in South Africa to remove the anomaly in which locally produced vehicles are taxed at a higher rate than imported vehicles.

– The government is planning to introduce a gambling tax to raise money for rehab and awareness raising programmed. To be rolled out in 2019

– There are new plans in the works to start taxing e-smoking cigarettes and tobacco heating products.

– The government is making plans to review the definition of fuel levy goods to include biofuels in the payment of RAF and fuel levies

 

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