the national budget Flashcards
another name for fiscal policy?
national budget
what is a national budget?
a written estimate of the anticipated revenue and expenditure for the next financial year.
how does the government plan their finances?
- consider what they need to spend money on
- determines the tax levels needed to achieve their goal
what tools doe the government use to achieve economic growth and development?
fiscal policy
monetary policy
difference between direct and indirect tax.
direct: paid by the person on whom the tax is levied. [cannot be shifted to someone else]
indirect: tax that is levied on a specific transaction. businesses are responsible for paying the tax to SARS.
describe PAYE.
is payable by individuals who earn a salary or a wage. the tax is deducted from the salary or wage before the employer pays it to the employee
describe company tax.
paid by all registered companies.
20% dividends tax- must pay when profits are distributed to shareholders.
27% fixed percentage
describe fuel levy.
tax that is paid when petrol or diesel is sold and provides a source of revenue for government.
describe custom duties
tax that is payable when goods are imported from other countries and is either calculated on the value of the goods or the volume of goods imported.
describe excise duties.
are paid on goods manufactured in the country and are sometimes levied to discourage the use of certain products
describe VAT.
a consumption tax assessed on the value added in each production stage of a good or service.
VAT-exempted
the government declared that people will never pay VAT on these items, educational service,etc.
zero-rated
the government may at a later stage charge VAT but for now no VAT is charged
what does VAT stand for and what percentage is it levied?
value added tax
it is levied at a rate of 15%
what is the monetary policy?
deals with government’s efforts to achieve sustainable economic growth and development by controlling the supply of money in the country.
