Finance Minister Tito Mboweni delivered the budget speech yesterday, 24 February 2021. This year’s budget has taken into consideration the impact that Covid-19 has made on all South African’s, households and businesses alike.
As a recap, some of the highlights which stood out in particular were as follows:
- There will be no change to value-added tax (VAT).
- The corporate income tax rate will decrease by 1% (to 27%) from 1 April 2022.
- An above-inflation increase of 5% in personal income tax brackets, as well as primary, secondary and tertiary rebates.
- Monthly tax credits for medical scheme contributions will increase by just over 4%.
- Taxes on alcohol and cigarettes will increase by 8%. The general fuel levy will be hiked by 15c per litre.
Please see the link below for the 2021 2021_Budget_speech_update as published by Allan Gray. It’s a 3 page document providing you with an overview of all the changes.