select
|

Personal tax relief positive news for cash-strapped consumers

In yesterday’s National Budget, the Minister of Finance, Pravin Gordhan’s emphasis on controlling state expenditure while still placing a priority on encouraging growth, job creation and infrastructural expenditure is welcomed, as is the fact that he has managed to provide personal tax relief of R9.3 billion to cash-strapped consumers in the 2014/15 financial year, says Dr Andrew Golding, CE of the Pam Golding Property group.

“The R6.5 billion allocated over three years to support small and medium enterprises is also a step in the right direction, coupled with the news that the turnover tax regime will be amended to further reduce the tax burden on micro-enterprises, as this will further encourage entrepreneurial endeavours and hopefully, also job creation. The proposal of an increase in the tax-free, lump-sum amount paid out of retirement funds from R315 000 to R500 000 is also expected to assist South Africans to plan for their future and help foster a culture of saving. In this regard the introduction of legislation to allow for tax-exempt savings accounts is a further positive move.

“From a property market perspective, it is disappointing to note that there was no property specific tax relief or schemes introduced which would help home ownership generally, but in particular first time home ownership. However, new spatial plans for cities, upgrading informal settlements, increased social infrastructure and improved public transport, coupled with the announcement of 216 000 houses to be built, is positive news,” says Dr Golding.

“The introduction of an integrated city development grant – to the tune of R814 million over the medium term – in order to strengthen long-term city planning and encourage private investment in urban development is encouraging, as is the R3.9 billion allocated to capacity building programmes (including upgrading human settlements) in the Medium Term Expenditure Framework, targeted at small towns and rural municipalities.

“We are also encouraged to hear that there are moves to entrench the rights of all investors, ensuring that property rights are protected - in line with the Constitution, under the new Promotion and Protection of Investment Bill which has been released for public comment.

“Of concern however, particularly on the back of recent fuel price hikes, is the increase in the general fuel levy by 12 cents a litre and the road accident fund levy by 8 cents a litre, as this places further pressure on consumers and inflation.”

“All in all, the Budget appeared to meet the challenging need for a balance between curbing unnecessary expenditure and investing in our country and its people. Considering the ongoing global economic uncertainties faced, South Africa’s economic policy has consistently achieved a stable economy and the Minister of Finance is commended on this,” concludes Dr Golding.

He adds that from a Pam Golding Properties perspective, the property market has since the start of 2014 generally been characterised by an air of positive sentiment, increased activity levels with a marked shortage of stock in many areas around the country and brisk sales, despite the recent 0.5 percent interest rate increase.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK