No direct increases in corporate and individual taxes
A gain of R12.8bn will accrue to the fiscus because no adjustment has been made to tax tables to take bracket creep into account
The budget does not propose any direct increases in corporate and individual income tax, but the failure to adjust tax tables to account for inflation means that individual taxpayers will be paying more if their salaries increase. A gain of R12.8bn will accrue to the fiscus due to the fact that no adjustment has been made to tax tables to take bracket creep into account. Bracket creep is when the salaries of taxpayers move them into a higher bracket as a result of inflation. The tax-free threshold for personal income taxes increased from R78,150 to R79,000 at a cost to the fiscus of R1.2bn. This is a tax benefit for low-income earners. A small increase in personal income tax rebates has been proposed. The primary, secondary and tertiary rebates will be lifted 1.1%, providing a small amount of relief for inflation.
An additional R1bn will accrue to the fiscus due to no adjustment having been made to the monthly medical tax credit for medical scheme contributions, to take accoun...
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