Prepare your investments for Budget 2017/2018

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

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.

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%.

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:

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