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The Budget 2007 - 2008
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The South African Budget at a Glance
In 2006 South Africa's budget process was ranked by the US-based Center of Budget and Policy Priorities as the third most transparent in the world, just after France and Britain and ahead of the USA. And for the second year running, the Minister of Finance was in the enviable position of being presented with a substantial revenue surplus.
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Budget at a Glance
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Revenue overrun of R29 bn
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Budget surplus of R5 bn or 0.3% for 2006/7
- Budget surplus of R11 bn or 0.6% projected for 2007/8
- Projected GDP growth of 4.8% for 2007/8
- Accelerate spending for police, education, health, social services and community infrastructure
- Debt service down to 3% of budget, will be further reduced to 2.1% by 2009
- R8.4 bn relief in individual taxes mainly through bracket, threshold and exemption changes
- Tax on retirement funds eliminated (was cut from 18% to 9% last year)
- No changes in corporate taxes rates but Secondary Tax on Companies to be reduced and eventually eliminated
- Sin taxes go up again
- New compulsory social security fund to be established
Rates on corporate tax, VAT and capital gains remain unchanged but, importantly, the Secondary Tax on Companies, which many saw as a disincentive to investment, will be reduced from 12.5% to 10% effective October 2007.
[For more information on the South African Budget purchase South Africa at a Glance]
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