With many households and businesses still under financial pressure, National Treasury will not be increasing taxes to keep money in the taxpayer\u2019s pocket.<\/p>\n
Finance minister Enoch Godongwana said this when he tabled his maiden budget speech before a sitting of Parliament on Wednesday.<\/p>\n
\u201cHouseholds and businesses are still under financial pressure and are coping with higher obligations, the effects of Covid-19 and increased fuel prices.<\/p>\n
\u201cNow is not the time to increase taxes and put the recovery at risk. Accordingly, we have decided to keep money in the pockets of South Africans,\u201d he said.<\/p>\n
The proposal in the budget includes R5.2 billion in tax relief to help support economic recovery, provide some respite from fuel tax increases, and boost incentives for youth employment.<\/p>\n
National Treasury tax proposals for 2022\/23 are as follows:<\/p>\n
\u201cIn 2021, the inland petrol price breached R20 per litre. The higher prices have put pressure on the cost of transport, food and other goods and services.<\/p>\n
\u201cTo provide some relief to households, no increases will be made to the general fuel levy on petrol and diesel for 2022\/23. This will provide tax relief of R3.5 billion to South Africans.\u201d<\/p>\n
Godongwana said there will also be no increase in the Road Accident Fund levy.<\/p>\n
\u201c[Mineral Resources and Energy] minister [Gwede] Mantashe and I have agreed that a review of all aspects of the fuel price is needed. Our teams have already begun to engage on this critical work.\u201d<\/p>\n