No Increase in personal taxes…

As South Africans, we have become accustomed to uncertainty and unpredictability! Barely two months into the new decade and we’ve already had the JSE All Share Index surge to new highs then quickly retreat on the back of fears of the Coronavirus outbreak. Electricity has been switched on, switched off, switched on, switched off, switched on or off, off or on, I forget!

Yesterday the Minister of Finance, Mr Tito Mboweni, shocked most South African taxpayers with his slightly more positive Budget update that signalled no personal tax increases for the already weary taxpayer and proposals to try to limit public sector wage increases.

What were the key changes in the Budget?

  • Above-inflation increases in the personal income tax brackets
  • Annual tax-free savings contributions increased from R33, 000 – R36, 000 per tax year
  • No transfer duty payable on the purchase of a property up to R1, 000, 000

Click here to listen to STANLIB’s Chief Economist, Kevin Lings as he unpacks the economic analysis of the Budget 2020.

Coronavirus

The beginning of this week saw global stock markets decline on fears of the spreading of the Coronavirus and the impact that this may have on global economies. South Africa is not immune to this sell-off and the past few days has seen the market decrease in-line with global markets around the world.

Many South African companies listed on the JSE All Share Index are now at the cheapest levels they have been in many a recent year. Fund Managers are now optimistic about the potential for growth from these current levels. There remain very well run companies in South Africa who will be able to adapt to the changing environment and continue to grow their earnings and reward investors with capital appreciation in the long term.

With so much noise being made by politicians and volatility in the markets here to stay it is important for investors to remain calm and focus on allowing their capital the time it requires to grow. It’s not timing the market but time in the market that rewards investors! We continue to ensure that investors capital is protected in these turbulent times but are happy to address any worries that clients may have.

Please contact the office to schedule an appointment if you would like to discuss anything over a cup of coffee.


For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” Winston Churchill