by Faizil Jakoet
Head of Retail Client Services – AllanGray
During the much-anticipated Budget speech, the Minister of Finance announced tax relief for individual taxpayers, signalling that tax brackets will be adjusted and personal income tax rebates will increase. In addition, the annual contribution limit for tax-free investments (TFIs) will increase, effective March 2020.
There will be no change to value-added tax (VAT) or corporate tax.
We have created a short document summarising the key updates that you can use in your conversations with clients.
What were the key changes?
Tax relief for individual taxpayers
Personal income tax brackets will be adjusted and primary, secondary and tertiary rebates will increase by 5.2%
Personal income tax brackets will be adjusted and primary, secondary and tertiary rebates will increase by 5.2%
Increase to the TFI annual contribution limit
The annual limit on TFI contributions will increase from R33 000 to R36 000, effective 1 March 2020
The annual limit on TFI contributions will increase from R33 000 to R36 000, effective 1 March 2020
Hike in excise duties and fuel levy
There will be a tax hike on alcohol and cigarettes of between 4.4% and 7.5%. The general fuel levy will rise by 16c per litre
There will be a tax hike on alcohol and cigarettes of between 4.4% and 7.5%. The general fuel levy will rise by 16c per litre