Johannesburg - “The Budget message was driven by low economic growth, inequality, the need for shared growth and the objective of building foreign investor confidence.” - Johan Gouws, Head: Absa asset
consultants
“After missing the opportunity during last year's Budget, the minister of finance raised the top end of the personal tax income tax bracket to 45 percent taxable income over R1.5 million, putting further pressure on personal consumption expenditure.” - Johan Gouws, Head: Absa asset consultants
Education
"According to the Budget review, spending on higher education and training, which includes universities and TVET colleges, is expected to be R77.5 billion in 2017-18 and reach R89.8 billion by 2019-20. Absa will support this goal through our commitment of R1.4 billion to education and skills development over three years in Barclays Africa-presence countries.
This includes over R10 million in a new programme, which provides training in financial management and governance for school governing body members in South Africa, partnering with the Department of Basic Education.” - Sazini Mojapelo, Barclays Africa head of citizenship
On the pending sugar tax
“The sugar tax is going to come through as confirmed by the minister. It will be unpopular with businesses affected and quite honestly a bit of a cynical move by government as it has nothing to do with health implications, but rather everything to do with raising national wealth. Important to note that this is not new to SA and has been adopted by many countries.” - Chris Gilmour, Absa stockbrokers and portfolio management
“Transfer duty threshold on property increased to R900000 will support housing affordability in view of consumers and households that came under increased financial strain due to inflationary pressures and rising interest rates since early 2014.” - Jacques du Toit, Absa property economist
A new top personal income tax rate of 45 percent for those with taxable incomes above R1.5 million.
“This is a bit of a surprise, we accepted it but by about 1 percent or so.
"We need to encourage consumers to save, this will be a bit difficult as it’s a substantial amount taken from the consumers pocket.” - Chris Gilmour, Absa stockbrokers and portfolio management
The annual allowance for tax-free savings accounts will be increased to R33 000.
“This is encouraging and a good move by government as it embeds a culture of saving.” - Chris Gilmour, Absa stockbrokers and portfolio management
“The increase in government expenditure has been reasonably well controlled, for instance controlling the growth in the public sector wage bill, but the aim of increasing tax revenue to reduce the deficit and our overall debt levels is facing challenges due to a slow growing local economy.” - Kwaku Koranteng, senior asset consultant Absa stockbrokers and portfolio management
“The finance minister’s announcement to increase the top marginal tax rate of higher-income earners will put a bigger squeeze on this group and has a negative effect on disposable income.
While this diminishes the country’s ability to attract highly-skilled workers, it is in line with the central theme of the Budget to reduce income equality and create a more inclusive economy.” - Kwaku Koranteng, senior asset consultant, Absa stockbrokers and portfolio management
“Social grants were adjusted by between R20 and R90 a month, this will provide some moderate relief to financially vulnerable households. These increases will take effect in April to compensate for the impact of inflation.” - Jacques du Toit, Absa economist.