Johannesburg — THINGS are seldom what they seem. A case in point is the 2006-07 national budget, careful consideration of which reveals that a great many taxpayers must disabuse themselves of the notion that they stand to benefit from the finance minister's perceived largesse. The observation has particular application to higher income earners under 65 years of age.
Indeed, the tax reductions indicated by the revised tax tables are more than offset by the additional tax payable as a result of the new tax regime for medical-scheme contributions; the increase, from 50% to 60%, in the portion of travel allowances subject to pay-as-you-earn tax; and the increase in deemed private mileage from 16000km to 18000km; and the increase in the taxable value of company cars from 1,8% to 2,5% of determined value.
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