Here are some headlines from the 2022 Budget Speech:
Some much needed pragmatism and a balanced budget on the Horison
Inflationary Changes to Personal Tax Brackets
The usual inflationary changes have been made to the personal income tax brackets of 4.5%. Find the adjusted brackets below.
Reduction in Corporate Income Tax Rate
In the previous budget speech a corporate income tax rate reduction from 28% so 27% was announced. At the time this was not formalised into law. This has now been done and this will be effective for all financial years ending on or after 31 March 2023. This will be done in such a way to balance the overall Revenue collected by Government. In general this means that some special deductions will be removed for special sections. We’re always a fan of a simpler tax system (Less deductions but a lower rate).
Sin Taxes Increased
As has been the case for many years sin taxes are increasing. These excise taxes will increase by between 4.5% and 6.5%.
No Increase in the Road Accident Fund Levy and General Fuel Levy
On the back of large recent increases in the fuel prices due to the USD exchange rate and the general increase in the price of oil, the Finance Minister was able to balance the budget without increases in the Road Accident Fund Levy and General Fuel Levy.
Large Increase in the Employment Tax Incentive (ETI)
Given the success of the Employment Tax Incentive the employment tax incentive has increased by 50% in the new financial year to a maximum monthly value of R1500.
Plastic Bag Levy & Health Promotion Levy on Sugary drinks
There will be an increase in the Plastic Bag Levy of 3 cents from 1 April 2022, and an increase in 0.1 cent in the Health Promotion Levy on sugary drinks.
That’s in summary. Below we’ve attached the Pocket Guide issued by SARS every year and the Budget Highlights document for further reading. The full budget documents can be viewed directly on Treasury’s website.
Download Budget Speech and Tax Guides Below