Treasury withdraws R40bn in tax increases and raises personal brackets
Hike of 5% will reduce revenue by R2.2bn and will benefit those in the middle- to lower-income brackets
The Treasury has withdrawn the R40bn in tax increases that were planned for the next four years: R5bn for 2021/2022, R10bn in the following two years and R15bn in 2024/2025.
Instead, it has raised the personal tax brackets by an above-inflation increase of 5%, which will reduce tax revenue by R2.2bn. This will mainly benefit those in the middle- to lower-income brackets. This cost to the fiscus is fully offset by the export tax on scrap metal (R400m) and increases in excise duties on alcohol and tobacco (R1.8bn)...