Floris Slabbert’s market update on Groot FM, Tuesday 7 February 2017.

 

Market update

  • Locally, the JSE All Share Index gained 4.18% in January. The index traded around 2.4% lower in the first week of February. These losses were due to weakness in the Banks- and Financial sectors.
  • For the year to date, the local market has gained 4.18%, more than the 3.5% gains returned by the NASDAQ.

Ecsponent’s investments offer stable, predictable returns

 

Expectations for Budget 2017/2018

  • Minister Pravin Gordhan is expected to deliver the 2017/2018 Budget Speech before the end of the month.
  • His task will be to fund the R28 bn budget deficit.
  • It is expected that there will be increases to CO2 taxes, sugar tax and personal income tax. South African’s highest income tax bracket, which is 41%, is already much higher than the average of 33% across the continent.
  • With this in mind, it is hoped that investors will not be further hit by increases in Capital Gains Tax or significant changes to the taxation of trusts.
  • A VAT increase is not expected although at 14% our VAT rate is significantly lower that other countries’ rates. For example, the VAT rate in the UK is 17.5%.

 

Retirement fund contributions – recommendations for possible tax savings

  • Maximise your retirement fund contributions before the end of the tax year on 28 February.
  • Taxpayers will receive a tax deduction if they contribute up to 27.5% of their taxable income to a retirement fund, up to an annual limit of R350,000.
  • Only people with a taxable income of more than R 1,27mil will exceed this limit, hence there is room for most to increase their contributions and benefit from the tax deduction.
  • Download the Ecsponent 2016/2017 Tax Guide and send us an email to receive the 2017/2018 Tax Guide after the Budget Speech is read on 23 February.

 

Watch the full interview here: