While there were no real surprises in the National Budget 2010 presented by the Minister of Finance on Tuesday 17 February 2010, given the economic climate and considerable challenges faced, the Minister is commended on focusing on key areas such as education, job creation, infrastructural improvements and providing relief – mainly to lower income earners, says Dr Andrew Golding, CE of the Pam Golding Property group. It is however regretted that fuel tax is to increase by 25.5 cents per litre, a factor which is inflationary in itself.
Furthermore, from a property perspective it was disappointing that consideration was not given to the reduction in transfer duty as a means of assisting aspiring homeowners. It is regretted that an increase in the transfer duty threshold – which currently stands at R500 000 – did not materialise, as this would have had the effect of considerably contributing towards making home ownership more affordable and within the reach of consumers, particularly first time buyers.
However the increase of 11.6 percent over the next three years allocated to the housing department is welcomed, as this will provide assistance to the lower end of the market.
The reduction in personal income tax was also a positive note, although it is of concern that the minister indicated this may increase next year, given that South Africans already pay a relatively high rate of income tax.
On the back of a recovering economy and given the anticipated reduction in job losses, we remain optimistic in terms of South Africa’s economy and potential for growth, and the positive impact this will have on the country’s housing market.
For further information contact Dr Andrew Golding on 021 7101700.
– Pam Golding Press Office