Impact of fuel levy on household expenses will be dire
JOHANNESBURG - Belts are tight enough and there is no breathing space, due to the high cost of living.
And still, Finance Minister Enoch Godongwana did not adjust the salary brackets for inflation.
He increased the fuel levy, which will push up inflation.
Next month, petrol goes up by 16 cents a litre and diesel by 15 cents. This is the first fuel levy increase in three years.
Godongwana said this alone would not close the fiscal gap over the medium term.
Consumer financial education specialist at Momentum Group Salem Nyati says there simply is no breathing space for South Africans.
She says when you look at the ratio of the actual household debt verses disposable income it adds to 62%
According to Nyati this means that for every R2000 that the household earns R600 goes towards servicing debt.
At that point the household has not eaten nor have they bought electricity or transport, she says.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
2 hours ago
- IOL News
Financial tips for UK expats moving back to South Africa
Explore the financial implications for UK expats returning to South Africa, including tax residency, pension arrangements, and property considerations. Learn how to optimise your finances for a smooth transition back home. Image: Supplied. South Africa faces many challenges, but a clear trend is emerging of expats returning home. Stats SA's Migration Profile Report for South Africa, released last year, shows that since 2000, the number of South Africans in the UK has grown from 136,720 to 247,336. But in a move that some have dubbed 'reverse emigration', many are heading back. The top reasons for coming back range from missing the South African lifestyle and family and friends, to the bad weather and high cost of living in the UK. The UK is significantly more expensive than South Africa, especially when it comes to housing, eating out, and labour costs. For the same income, South Africa offers families better homes, an affordable lifestyle, and access to good schools. Here are the financial implications for expats returning to South Africa. Ensure your finances are in order before you move back A move between countries shifts tax residency, so you will need to determine your tax residency status in both the UK and South Africa, as this will impact how your income and worldwide assets are taxed. Be aware that South Africa taxes residents on their worldwide income while non-residents are taxed only on South African-sourced income. It is important to familiarise yourself with the UK-South Africa DTA to avoid being taxed twice on the same income. It is a good idea to monitor the GBP/ZAR exchange rate to plan the timing of your transfers. The Rand can be volatile, so it may be a good idea to work out your income and capital needs in South Africa and transfer only the amount that you are planning to spend there. Remember that retaining funds offshore can hedge against a weakening currency. Make sure you review your UK pension arrangements before you leave. Several UK pension providers will not accept SA residents on their platform or, when you become a non-resident in the UK, will not allow you to make further changes to your existing UK pension. This could have a material impact on your retirement planning. It's also a good idea to make sure you understand the tax treatment of your UK investments in South Africa, including potential liabilities for Capital Gains Tax or foreign dividends. A question that comes up often is 'Should I retain my ISAs?' Unfortunately, ISAs are not tax-free in South Africa, which has its own version of an ISA called a Tax-Free Savings Account. When moving to a new country, it's best to review the product wrappers you are currently using, as well as what options you have available in South Africa. Many clients benefit from restructuring their investments and tax optimising strategies when it comes to cross-border financial planning. If you have a UK property, you will need to decide whether to sell, rent out, or retain your UK property. Be aware of tax implications, such as Capital Gains Tax and rental income tax in both countries. Buying property in South Africa is fairly straightforward, but make sure that you do your due diligence before any large purchase. Getting set up with a bank account can be difficult without being physically present and able to provide proof of residence in South Africa. Once you have the required supporting documents, the process of opening an account is relatively easy. Many South African bank providers offer offshore accounts. The money required to be held in these accounts is much higher than a local bank account, but it can provide additional flexibility for holding non-Rand assets. * Adshade is the wealth advisor at Sable International. PERSONAL FINANCE
TimesLIVE
4 hours ago
- TimesLIVE
'A man of unwavering principles': Ramaphosa delivers eulogy at activist cleric Tshenuwani Farisani's funeral
President Cyril Ramaphosa has described the late activist cleric Rev Tshenuwani Simon Farisani as a man of unwavering principles who did not yearn for the limelight and positions. Ramaphosa delivered the eulogy at the funeral of the ANC politician at the University of Venda stadium in Limpopo on Saturday. Farisani was accorded a special official provincial funeral category two. 'He was a man of unwavering principles. Nothing could sway him from what was right, from his dedication to the cause of the people of South Africa and their total emancipation,' he said. Ramaphosa said Farisani saw himself as a mentor and 'indeed he was my mentor and he was my teacher as well'. Scores of politicians, including ANC secretary-general Fikile Mbalula, attended the funeral. Farisani was a revered South African theologian, Lutheran minister, anti-apartheid activist and political leader. He was a man of unwavering principles. Nothing could sway him from what was right, from his dedication to the cause of the people of South Africa and their total emancipation. President Cyril Ramaphosa He was born on August 30 1948 in Songozwi village (then part of the Venda homeland in the Transvaal). He rose from rural hardship to become one of the most influential voices in liberation theology and the struggle for freedom in apartheid South Africa. 'We have lost an extraordinary man who lived an extraordinary life. This obituary, which has been read by his child, is an obituary that includes the life of Tshenuwani in full,' Ramaphosa said. He further added Farisani's year of birth, 1948, was a turning point in the history of South Africa, a year when the National Party swept to power and ushered in an evil spirit of apartheid that was declared a crime against humanity by the UN. 'Dean Farisani was born into circumstances that mirrored the lives of millions of black South Africans at the time. He was just a child, barely three years old, when his family was confronted with the ugly face of injustice.' He said many years later, in 1996, Farisani would testify at the Truth and Reconciliation Commission on how his family became victims of forced removals from Songozwi near Makhado (formerly known as Louis Trichardt). Farisani, he said, rebelled against the dubious teachings of the Lutheran theological college at Maphumulo, from which he was expelled in 1972. Ramaphosa hails late Mam Motlana as a 'fearless and resolute' opponent of oppression President Cyril Ramaphosa said South Africans should pay tribute to activist and Member of the Order of the Baobab Sally Motlana by emulating her ... Politics 1 year ago He developed an interest in liberation theology and its message that the true Christian faith demands active resistance to all forms of oppression and solidarity with the poor. He became involved with underground political organisations like the Black People's Convention, the black consciousness movement. It was at this time that Farisani travelled extensively across the country. In his many travels, he visited Mphaphuli High School, where Ramaphosa was a pupil. 'Farisani was a guest at our school's flourishing debating society, which a number of us, including Judge Raulinga, Tshifhiwa Muofhe and people like Willy Mudau, had set up. Farisani and I formed an immediate and lasting bond of friendship, comradeship and loyalty based on respect and love. He opened to me the radical interpretation of the Bible, which Farisani was later to become famous for. 'He argued the Lutheran church must turn away from political conservatism and become an instrument of opposition,' said Ramaphosa. He said Farisani was a courageous revolutionary who inspired a generation to reclaim their pride and to stand up for their rights. 'I was one of those who were hugely inspired by him. He was, in addition to everything else, a renowned academic, a prolific scholar whose writings gave voice to the voiceless. He was a guide and a mentor to many.' Ramaphosa said Farisani's activism continued into the democratic era, where he became an MEC and speaker of the legislature in Limpopo province. He said those roles placed him in a position of power and influence, yet did not change him. 'He was a servant leader who came, served and left. When he saw corruption being perpetrated by those who are trusted with public funds, he was vocal and scathing in his criticism, and that is why he was one of those when the VBS looting happened who spoke out. 'He spoke out to a point where a number of people started to hate him, but it never moved him. The foundation that bears his name continues to be an influential voice in the public space in advancing social justice. Neither beatings nor torture could make Farisani surrender his principles' .
SowetanLIVE
6 hours ago
- SowetanLIVE
Joshco bridges housing gap for missing middle residents
Construction is under way on what will become the largest phase of the Johannesburg Social Housing Company's (Joshco) Riverside View project in Diepsloot, which will add more than 700 new units to the growing social housing development. During an oversight visit, Nhlamulo Shikwambana, Joshco's acting COO, said 'the development has already completed three phases, with tenants living in over 300 units, and construction of phase 4 now under way'. 'Once complete, phase 4 will add over 700 more units. This is going to be our biggest build in the area. The plan is to reach over 1,000 units in Diepsloot' Shikwambana said the project is specifically aimed at South Africans in the 'missing middle', those who earn too much to qualify for RDP houses but too little to afford bonded homes. 'We are closing the gap for people who fall through the cracks. Most of our residents come from informal areas. We want them to feel safe and comfortable without being financially overstretched,' added Shikwambana.
