WATCH: No increase in personal tax income

Finance Minister Tito Mboweni has announced that government will not increase any personal tax income. Courtesy #DStv403

CAPE TOWN - Finance Minister Tito Mboweni has announced that government will not increase any personal tax income.

South Africans are already among the most highly taxed in the world.

Mboweni said substantial tax increases may obstruct short-term recovery.

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However, as a result, government will not raise any taxes to collect the additional R10-billion in 2020/21.

"To support growth, we propose no major tax increases," Mboweni said.

"Indeed, there is some real personal income tax relief. This budget means that a teacher who earns on average R460 000 a year, will see their taxes reduced by nearly R3,400 a year. Hard-working taxpayers, who earn on average R265 000 a year, will see their income tax reduced by over R1,500 a year.

"Our income tax system is progressive, and the adjustments reflect this. Someone earning R10 000 a month will pay 10-percent less in tax. Someone earning R100 000 a month will pay about 1.5-percent less. We are also proposing broadening the corporate income tax base. This additional revenue will be used to reduce the corporate tax rate in the near future to help our businesses grow."

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The finance minister announced that tax-free savings increased by R3,000 from 1 March 2020 (from R33 000 to R36000).

No transfer duty on the purchase of a property with a value below R1-million has also been announced.

Source
eNCA