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Budget Speech 2021

by | Feb 25, 2021 | Personal Finance

“We owe a lot of people, a lot of money.”
These were the words of Finance Minister, Tito Mboweni, as he delivered the 2021 Budget Speech.

Here are some key points from Budget 2021

  • A surprise surge in tax from mines, plus a faster-than-expected recovery in VAT income, has prevented income tax hikes this year
  • Many South Africans were expecting huge tax hikes to fund the Covid vaccine – thankfully that didn’t happen!
  • VAT remains unchanged at 15%.
  • Fuel levies up by 27 cents per litre comprising of
      • 15 cents per litre for general fuel levy
      • 11 cents for the road accident fund and
      • 1 cent for carbon tax.
  • THIS will definitely impact the pockets of consumers

 

Smokers and drinkers got hit hard

  • A 340ml can of beer or cider will cost an extra 14c
  • A 750ml bottle of wine will cost an extra 26c
  • 750ml bottle of sparkling wine an extra 86c
  • Bottle of 750 ml spirits, including whisky, gin or vodka, will
    increase by R5.50
  • A packet of 20 cigarettes will be an extra R1.39c
  • 25 grams of piped tobacco will cost an extra 47c
  • And a 23 gram cigar will be R7.71 more expensive

 

Many people are upset that social grants increase by only 2.2 percent. This means that :

  • There is only a R30 increase for old age pensions, disability and care dependency grants to R1890.
  • Also only a R30 increase in the war veterans grants to R1910
  • Pensioners over 75 will receive R1910.
  • Child care grants increase by only R10 to R460,
  • As well as a R10 increase in the foster care grant to R1050

 

There is no doubt that in terms of the overall economy – South Africa is far from where it should be.

2021 will undoubtedly be tough year for South African consumers. In order to have as much money available for everyday living expenses and to have some cash available to save for that rainy day – we must get our debt under control.

Don’t make more debt, to pay off existing debt. Stop the debt spiral now!
South Africans – the struggle remains real!

 

Debt options

Before panic sets in, we need to calmly look at what our options are with regards to our financial problems.
Should we be speaking directly to our creditors, in the hope that they will be sympathetic towards our plight? Should we be looking at consolidation loans (even though our credit record won’t allow us to get one)
Or should we be looking at the debt relief option of debt counselling. It isn’t a quick fix – but it is a viable, NCR monitored solution which will see you debt free and ready to start afresh.

For more information on whether you qualify for debt review. Contact us today.

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