The personal income tax rate is expected to rise after the Finance Ministers annual Budget Speech.
Kyle Mandy, Tax Policy leader spoke to reporters and said the following:
There is an expected increase of one per cent across the board with the exception of the lowest band. This is to spread the burden as government is hoping to raise an additional R10 billion to give the South African Revenue Service its required relief.
He also stated that increasing the tax of only one band is too risky and government might not obtain the revenue it requires.
“The economy has been under pressure,” he says ” It needs new ways to raise money.”
Company tax and VAT are expected to remain constant while securities taxes could increase from 0.25 percent to 0.5 percent, hopefully adding another R5 billion to tax revenue. Smoker and drinkers are warned about a possible steep increase in sin taxes, which may be at a higher rate than inflation.
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