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.
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.
The medical tax credit, which usually sees some adjustment for inflation, remains unchanged. Government will collect roughly R1 billion through this measure.
The adjustments to personal income rebates are set out in the table below:
The table below shows how much tax government expects to raise from different income groups.
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.