The Budget 2022

Yesterday, the Minister of Finance Mr. Enoch Godongwana tabled his maiden Budget speech. Minister Godongwana proposed no significant tax hikes to personal income taxes along with maintaining the current VAT rate for the 2022/2023 tax year.

The Minister highlighted South Africa’s continued commitment to proceed with fiscal discipline, however, South African taxpayers will have to see whether the proposed changes to Government expenditure can be implemented.

Key changes in the Budget?

  • Tax relief for individual taxpayers with personal tax rates and rebates adjusted upwards by 4.5% in line with expected inflation.
  • Corporate tax rate to decline to 27% effective for years of assessment ending on or after 31st March 2023.
  • Offshore investment limits in retirement savings set to increase from 30% to 45%
  • Increase in excise duties, but no additional increases to the fuel tax levy or the Road Accident Fund

Chief Economist for Stanlib, Kevin Lings, described the Budget as a cautious Budget with the Minister largely delivering a Budget that was in line with market expectations.

To listen to the full thoughts of Kevin Lings please click on the link.

Last chance to contribute to Retirement Annuities

Investors are reminded that the end of the tax year is almost upon us. Investors can reduce their taxable income by contributing to a retirement annuity. Should you wish to reduce your tax liability please contact the office soonest to ensure that your contributions are deductible for this financial tax year.

“Government’s view of the economy could be summed up in a few short phrases; If it moves, tax it. If it keeps moving, regulate it. And if it stops moving subsidize it.” Ronald Reagan

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