The Minister of Finance did not create an uproar with his maiden budget speech and said some calming words like …
- “Tax revenue collected was more than budgeted” and “The South African government finances are turning the tide”.
- Tax free threshold increase from R87 300 to R91 250
- Medical Tax Credits has increased to R347 for each of the first two dependents and R234 for each additional dependant thereafter
| TAX RATES FROM 1 MARCH 2022 TO 28 FEBRUARY 2023 INDIVIDUALS AND SPECIAL TRUSTS | |
| 1-226 000 | 18% of taxable income |
| 226 001 – 353 100 | 40 680 + 26% of taxable income above 226 000 |
| 353 100 – 488 700 | 73 726 + 31% of taxable income above 353 100 |
| 488 701- 641 400 | 115 762 + 36% of taxable income above 488 700 |
| 641 401- 817 600 | 170 734 + 39% of taxable income above 641 400 |
| 817 601- 1 731 600 | 239 452+ 41% of taxable income above 817 600 |
| 1 731 601 and above | 614 192+ 45% of taxable income above 1 731 600 |
Above scales have been increased by 4%:
| TAX REBATES AND TAX THRESHOLDS | |
| Rebate | Value |
| Primary | R16 425 |
| Secondary (Persons 65 and older) | R9 000 |
| Tertiary (Persons 75 and older) | R2 997 |
| Age | Tax Threshold |
| Below 65 | R91 250 |
| Age 65 and below 75 | R141 250 |
| Age 75 and over | R157 900 |
Key Points from the 2022 Budget Speech:
- Government expects to achieve a primary surplus – where revenue exceeds non-interest expenditure – by 2023/24. In 2024/25, main budget non-interest expenditure will grow slightly above CPI inflation.
- The consolidated budget deficit is projected to narrow from 6 per cent of GDP in 2022/23 to 4.2 per cent of GDP in 2024/25.
- Gross loan debt will stabilise at 75.1 per cent of GDP in 2024/25.
- Debt-service costs consume an increasing share of GDP and revenue. They are expected to average R333.4 billion a year.
- Tax revenue strengthened significantly in recent months and is expected to reach R1.55 trillion for 2021/22, well above projections.
- Given the revenue improvement, government proposes R5.2 billion in tax relief to help support the economic recovery.
- Reduction in company income tax rate to 27 % for tax years ending on or after 31 March 2023
- Plastic bag levy is increased by 3 cents to 28 cents per bag from 1 April 2022
- No changes to the general fuel levy and road accident fund levy
- Increases of between 4.5 and 6.5 per cent in excise duties on alcohol and tobacco.
- Health promotion levy on beverages is increased by 0.1 cent to 2.31 cents per gram of sugar from 1 April 2022. Increasing the monthly benefits for employers under the employment tax incentive by 50 per cent.
- Granting tax relief by adjusting personal income tax brackets and rebates for the effect of inflation
