South Africa Car Hire

Total tax relief of R19.1bn.

R13.5bn individual income tax relief

Top marginal tax stays 40%,

Top tax threshold increased to R400 000.

Minimum tax threshold raised to R40 000,

Minimum tax threshold for over 65's raised to R65 000 a year.

Tax on retirement funds reduced from 18% to nine percent.

Transfer duty on houses below R500 000 abolished; five percent rate applies between R500 000 and R1m, and eight percent above.

Municipal property rates revenue zero-rated for VAT.

Offshore foreign currency allowance for individuals increased from R750 000 to R2m.

Regional Service Council levies abolished.

Maximum old age and disability grant, and care dependency grant, increased by R40, to R820 a month; foster care grant by R30, to R590; and child support grant by R10, to R190 a month.

Monthly taxable benefit of a company car increased to 2.5% of its value.

Proportion of motor vehicle allowance subject to PAYE increased from 50 to 60%.

Threshold for individual tax-deductable medical expenses raised from five to 7.5% of income.

Donations tax exemption increased from R30 000 to R50 000.

Estate duty exemption increased from R1.5m to R2.5m.

Primary residence exclusion from capital gains tax increased from R1m to R1.5m.

Additional five cents a litre on petrol and diesel for Road Accident Fund.

Tax deductible donation status extended to conservation, environmental, and animal welfare organisations.
Budget & Business


Tax amnesty for small businesses.

Annual turnover threshold for small businesses raised from R6m to R14m, and taxable threshold for the lower ten percent rate increased from R250 000 to R300 000.

Small business income tax exemption threshold raised from R35 000 to R40 000.

Simplified rules for tax treatment of bursaries and scholarships provided by employers.

Deduction for research and development spending increased from 100 to 150%.

Excise duty on sparkling wine up 20 percent, unfortified wine 12.5%, and other alcohol products by between nine and ten percent.

Tax on cigarettes, tobacco and cigars up by between five and ten percent.
Budget & Economy


Estimated revenue of R446.4bn and spending of R472.7bn --1.5% deficit.

R215bn allocated to national department functions, R176.6bn to provinces, and R26.5bn to local government.

Significantly increased spending on education, public health, social welfare services, and housing and municipal infrastructure, local transport and water schemes.

R3.5bn more for national roads and rail infrastructure, and R7.1bn for Gautrain.

R5.4bn to expand and equip police and improve courts administration and justice department capacity.

R3.1bn added to defence modernisation and infrastructure.

R900m to foreign affairs capacity and African Renaissance Fund.

R3.3bn to improve maintenance of government buildings.

GDP growth expected to average five percent over next three years, and CPIX inflation 4.5%.

Durban - In a bizarre parallel, Jacob Zuma's "love child" Edward - the reason why Judge Jeremiah Shongwe, Edward's uncle, was unable to hear Zuma's rape trial this week - has also faced a rape charge.

And the repercussions of those charges led to another probe into Zuma and his financial adviser Schabir Shaik's finances, after allegations that Shaik arranged payments to the alleged victim once she dropped the case.

Shaik's regular payments of various expenses on Zuma's behalf, which the two men say were legitimate loans, were part of the corruption charges against Shaik.

Mziwoxolo Edward Zuma was arrested on October 22 2000 for allegedly raping a fellow student at the University of Zululand.

The charges were withdrawn and, on October 27, Zuma's office issued a statement saying the two parties had discussed the matter and resolved it amicably.

However, noseweek magazine later claimed there appeared to be a financial inducement attached to this decision, which emerged when the MD of one of Shaik's companies queried payments made to the girl from company accounts.

Confirmed settlement talks

Sabeer Sheik-Ibrahim, the former MD of Kobitech Transport Systems, confirmed this story to the Mail & Guardian newspaper, saying she had been receiving about R7 000 a month.

The girl's attorney, Linda Mazibuko, was quoted in noseweek as also confirming settlement talks involving Shaik, but declined to divulge any details.

KwaZulu-Natal director of public prosecutions Shamila Batohi confirmed in 2003 that she was reviewing the investigation in the light of the new claims.

She said she had received a report from the prosecutor and was awaiting the police docket.

On Thursday, Shaik dismissed the charge that he paid off the complainant as "absolute nonsense" and told a Johannesburg newspaper that he showed noseweek editor Martin Welz his company accounts and that Welz was satisfied that no payments were made to the woman.

However, on Thursday night, Welz told The Witness this was not true.

Accountant was in Johannesburg

He said Shaik invited him to see the accounts, but then avoided an appointment they set up for the purpose.

Welz said Shaik's accountant told him he could not confirm or deny that the woman was paid as he was in Johannesburg during that time.

"Since it is clear that, whether he was away or not, as the company's accountant he would know whether such payments were reflected in the accounts or not, it was clear to me that he simply did not want to risk denying the allegation," said Welz.