For the first time in several years, government has made no adjustments to personal income tax brackets.
As widely expected, personal income tax rates also remain unchanged. National Treasury has however made marginal adjustments to rebates.
Read: #Budget2019 in a nutshell
Despite not adjusting tax brackets for inflationary adjustments to salaries, government will effectively collect R12.8 billion through stealth in the 2019/20 tax year. The marginal changes to rebates will amount to around R1.2 billion in tax relief.
Read: Tito Mboweni’s complete budget speech
The medical tax credit, which usually sees some adjustment for inflation, remains unchanged. Government will collect roughly R1 billion through this measure.
Read: The bottom line and what we are going to do about it
The adjustments to personal income rebates are set out in the table below:
Source: National Treasury
The table below shows how much tax government expects to raise from different income groups.
Source: National Treasury
Fuel levies will increase by 29c per litre for petrol (and 30c per litre for diesel). This consists of a 15c per litre increase in the general fuel levy, a 5c per litre increase in the Road Accident Fund levy and the introduction of a carbon tax on fuel of 9c per litre.
Read: SA budgets for land purchases even as expropriation looms
COMMENTS 1
You must be signed in to comment.
SIGN IN SIGN UP
Any changes on dividend tax….
Vote 2
End of comments.