The Consumer 1
TAX 1
Interest and inflation 5
Inflation and consumer price index (CPI) 6
Financial and contractual aspects 9
The National Credit Act (NCA) 13
Consumer Protection Act (CPA) 16
Unfair business practices 18
Consumer organisations 23
Consumer complaints 28
Food labeling and advertising regulations 31
Food and Nutrition 33
Nutrition and food related health conditions 33
LOW AND HIGH BLOOD GLUCOSE LEVELS 35
DIABETES 36
CORONARY HEART DISEASE 37
CHOLESTEROL 38
HIGH BLOOD PRESSURE / HYPERTENSION 40
- lack calcium, potassium, magnesium 40
= A major contributor to heart attacks & strokes as well as kidney failure and even death 40
OSTEOPOROSIS = porous bone 41
RICKETS 42
CONSTIPATION 43
GUT / DIGESTIVE HEALTH 44
ANAEMIA 45
FOOD ALLERGIES: 46
FOOD INTOLERANCE 47
EATING DISORDERS 49
Malnutrition 51
HIV/AIDS 52
FOOD-BORNE DISEASES 55
FOOD ADDITIVES 56
Safety of food additives and their influence on health 59
FOOD RELATED CONSUMER ISSUES 61
Irradiated food 64
Local food production and food security in South Africa 65
Clothing & fashion 68
Terminology 68
The fashion cycle 70
Factors influencing fashion trends 72
,Selecting clothing for young adults 74
Socio-economic factors influencing clothing choices 74
Socio-psychological factors influencing clothing choices 76
Clothing and the self-concept of adolescents 76
Symbolic meaning of appearance for social interaction 77
Brand labels 78
Appearance in the work world 80
Terminology 80
Creating a professional appearance 82
The company dress code 82
Guidelines when choosing and purchasing clothes and accessories 82
Planning a wardrobe for work 83
Eco-fashion and the sustainable use of textiles and clothing 85
Housing and furnishings 89
Renting 91
Building 93
Buying 95
Insurance 100
Housing support to home owners 101
Buying household appliances 103
Energy consumption of appliances 103
, 1 of 117
The Consumer
TAX
Reasons why tax is paid
• For government to earn money / revenue
• It is mainly from the personal tax South Africans pay
• The state uses the money to help fund social and economic programmes, and to provide
the following public services:
1. Schools
2. Universities
3. Hospitals
4. Clinics
5. Roads
6. Defence force
• All taxes are paid to the South African Revenue Service (SARS)
• and are then transferred to the National Treasury to distribute to local and provincial
government
• Most revenue is from income tax (personal & business) and then VAT
Examples of income which can be taxed
A. Income from employment (salaries, wages, bonuses, overtime)
B. Fringe benefits and certain lump sums
C. Income from business or trade
D. Investment income (interest, rental income, foreign dividends)
E. Annuities
F. pensions
G. Income from own business
• Every February the Minister of Finance delivers the budget speech which explains where
government expenditure for the following financial year will be spent and how this will be
funded
• The tax year = 1st March to 28/29th February
• Amount of tax you pay is dependant on:
A. How much you earn (anyone earning below the threshold does not pay income tax)
B. Your age (whether you are under/over 65)
C. Whether you are a member of a pension fun / pay toward a retirement annuity fund
• Adjustments are made annually.
• Paying tax is not optional - It is a legal requirement
Tax evasion: when tax payers use illegal methods to reduce tax liabilities
• i.e. way to pay less tax
• Eg. when full income is not declared (don’t declare alternate sources of income)
Tax avoidance: when tax payers use legal methods and good financial planning to
reduce tax burden
• Eg. pay towards a retirement annuity
, 2 of 117
Types of Tax
Direct tax
• Tax is paid on personal or business income
• The more you earn the more tax you will be pay
• Based on principal that people should contribute to wealth of state same way contribute
to their own wealth
7. Income tax
• SITE, PAYE, PROVISIONAL
• Employee’s tax that the employer must deduct from the employment income of the
employees and pay over to SARS
• Salaries, wages, bonuses, overtime pay, lump sum monies received
• It is withheld daily, weekly or monthly when these amounts are paid or become payable
to the employees
• Tax is also levied on business income, investments, rental income, annuities, pension,
capital gains tax or dividends.
A. Pay- As- You- Earn (PAYE)
• Regular income
• Tax paid monthly
• Is the amount deducted from the salary of a full time employee and paid to the Receiver
of Revenue by the employer.
• Employers issue an IRP5 (tax certificate) to employees
- A lot of money if to be paid at once
- Allows one to budget more easily
• Tax tables are used for the calculated tax amount.
• Certain ages have specific tax thresholds - anyone earning below the threshold does
not pay income tax
• What is deducted before tax is calculated:
- Pension fund contributions
- retirement annuity contributions
• Tax return forms must be filled in or done on-line (SARS e-filing)
• If you have paid too much, SARS will refund you.
• If you have paid too little you will be billed for the outstanding amount.
• Advantage = tax liability for year is settled over course of whole year of assessment
B. Provisional tax
• Irregular income (no salary)
• Eg. farmers, free lancers, business owners etc
• They can pay twice a year based on their possible taxable income instead of a large sum
at the end of the tax year.
• Tax estimates and payments are made on IRP6 forms
• Prevents large tax debt
TAX 1
Interest and inflation 5
Inflation and consumer price index (CPI) 6
Financial and contractual aspects 9
The National Credit Act (NCA) 13
Consumer Protection Act (CPA) 16
Unfair business practices 18
Consumer organisations 23
Consumer complaints 28
Food labeling and advertising regulations 31
Food and Nutrition 33
Nutrition and food related health conditions 33
LOW AND HIGH BLOOD GLUCOSE LEVELS 35
DIABETES 36
CORONARY HEART DISEASE 37
CHOLESTEROL 38
HIGH BLOOD PRESSURE / HYPERTENSION 40
- lack calcium, potassium, magnesium 40
= A major contributor to heart attacks & strokes as well as kidney failure and even death 40
OSTEOPOROSIS = porous bone 41
RICKETS 42
CONSTIPATION 43
GUT / DIGESTIVE HEALTH 44
ANAEMIA 45
FOOD ALLERGIES: 46
FOOD INTOLERANCE 47
EATING DISORDERS 49
Malnutrition 51
HIV/AIDS 52
FOOD-BORNE DISEASES 55
FOOD ADDITIVES 56
Safety of food additives and their influence on health 59
FOOD RELATED CONSUMER ISSUES 61
Irradiated food 64
Local food production and food security in South Africa 65
Clothing & fashion 68
Terminology 68
The fashion cycle 70
Factors influencing fashion trends 72
,Selecting clothing for young adults 74
Socio-economic factors influencing clothing choices 74
Socio-psychological factors influencing clothing choices 76
Clothing and the self-concept of adolescents 76
Symbolic meaning of appearance for social interaction 77
Brand labels 78
Appearance in the work world 80
Terminology 80
Creating a professional appearance 82
The company dress code 82
Guidelines when choosing and purchasing clothes and accessories 82
Planning a wardrobe for work 83
Eco-fashion and the sustainable use of textiles and clothing 85
Housing and furnishings 89
Renting 91
Building 93
Buying 95
Insurance 100
Housing support to home owners 101
Buying household appliances 103
Energy consumption of appliances 103
, 1 of 117
The Consumer
TAX
Reasons why tax is paid
• For government to earn money / revenue
• It is mainly from the personal tax South Africans pay
• The state uses the money to help fund social and economic programmes, and to provide
the following public services:
1. Schools
2. Universities
3. Hospitals
4. Clinics
5. Roads
6. Defence force
• All taxes are paid to the South African Revenue Service (SARS)
• and are then transferred to the National Treasury to distribute to local and provincial
government
• Most revenue is from income tax (personal & business) and then VAT
Examples of income which can be taxed
A. Income from employment (salaries, wages, bonuses, overtime)
B. Fringe benefits and certain lump sums
C. Income from business or trade
D. Investment income (interest, rental income, foreign dividends)
E. Annuities
F. pensions
G. Income from own business
• Every February the Minister of Finance delivers the budget speech which explains where
government expenditure for the following financial year will be spent and how this will be
funded
• The tax year = 1st March to 28/29th February
• Amount of tax you pay is dependant on:
A. How much you earn (anyone earning below the threshold does not pay income tax)
B. Your age (whether you are under/over 65)
C. Whether you are a member of a pension fun / pay toward a retirement annuity fund
• Adjustments are made annually.
• Paying tax is not optional - It is a legal requirement
Tax evasion: when tax payers use illegal methods to reduce tax liabilities
• i.e. way to pay less tax
• Eg. when full income is not declared (don’t declare alternate sources of income)
Tax avoidance: when tax payers use legal methods and good financial planning to
reduce tax burden
• Eg. pay towards a retirement annuity
, 2 of 117
Types of Tax
Direct tax
• Tax is paid on personal or business income
• The more you earn the more tax you will be pay
• Based on principal that people should contribute to wealth of state same way contribute
to their own wealth
7. Income tax
• SITE, PAYE, PROVISIONAL
• Employee’s tax that the employer must deduct from the employment income of the
employees and pay over to SARS
• Salaries, wages, bonuses, overtime pay, lump sum monies received
• It is withheld daily, weekly or monthly when these amounts are paid or become payable
to the employees
• Tax is also levied on business income, investments, rental income, annuities, pension,
capital gains tax or dividends.
A. Pay- As- You- Earn (PAYE)
• Regular income
• Tax paid monthly
• Is the amount deducted from the salary of a full time employee and paid to the Receiver
of Revenue by the employer.
• Employers issue an IRP5 (tax certificate) to employees
- A lot of money if to be paid at once
- Allows one to budget more easily
• Tax tables are used for the calculated tax amount.
• Certain ages have specific tax thresholds - anyone earning below the threshold does
not pay income tax
• What is deducted before tax is calculated:
- Pension fund contributions
- retirement annuity contributions
• Tax return forms must be filled in or done on-line (SARS e-filing)
• If you have paid too much, SARS will refund you.
• If you have paid too little you will be billed for the outstanding amount.
• Advantage = tax liability for year is settled over course of whole year of assessment
B. Provisional tax
• Irregular income (no salary)
• Eg. farmers, free lancers, business owners etc
• They can pay twice a year based on their possible taxable income instead of a large sum
at the end of the tax year.
• Tax estimates and payments are made on IRP6 forms
• Prevents large tax debt
