Budget 2015: Experts gives comment

The Budget presented today by Finance Minister Nhlanhla Nene is surprisingly well-balanced given the current economic conditions in SA and the world, and a positive one for the property market, according to Harcourts Real Estate CEO Richard Gray.
“The market will of course derive direct and major benefit from the upward adjustment of the threshold for transfer duty. This means than there will be no tax payable on the purchase of any existing or pre-owned home priced at less than R750 000 – which accounts for the vast majority of first-time buyers.
“What is more, the transfer tax rate has only been increased on properties priced at more than R2,25m – in line with the Minister’s clear intention of collecting as much as possible of the additional tax revenue required to balance the Budget this year from the wealthy.”
This is also clear, he says, from the decision to increase the income tax rate by 1% only for those earning above R190 000 a year, while dishing out substantial tax relief to small businesses, farmers and those who contribute to energy efficiency by developing or installing “green” equipment.
“Meanwhile, we are also very pleased with the large allocations for housing, infrastructure development and refurbishment, and job creation in this Budget, as these are all essential for the long-term health and stability of the property market.
“The large overall increase in the fuel levy is of course a negative, but we believe it is preferable at this stage to a large increase in income tax or a huge cut in government spending that would have further damaged SA’s growth prospects and international debt ratings.”

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