South African Minister of Finance Pravin Gordhan presented his budget for 2017 for South Africa in parliament on Wednesday. He had to make some tough calls, but the budget was generally well-received and seen as balanced. A new super-tax rate will kick in at a rate of 45% for earners with income of above R1.5 million (about US$113,000). Value Added Tax for goods and services is kept the same at 14% (the country’s labor unions vowed nationwide protests if that rate was raised). Gas will become even more expensive (currently at the equivalent of about $4/ gallon), and all the vices – cigarettes, cigars and alcohol products – will be taxed more heavily as well.
