{"id":754331,"date":"2024-02-22T12:16:45","date_gmt":"2024-02-22T10:16:45","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=754331"},"modified":"2024-02-22T12:16:53","modified_gmt":"2024-02-22T10:16:53","slug":"the-big-tax-change-for-south-africa-that-flew-under-the-radar","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/754331\/the-big-tax-change-for-south-africa-that-flew-under-the-radar\/","title":{"rendered":"The big tax change for South Africa that flew under the radar"},"content":{"rendered":"\n

While much focus on the 2024 budget speech was given to ‘small’ tax hikes and purported ‘relief’ from not increasing fuel taxes – a big announcement that flew under the radar is that tax brackets will be frozen for the next three years.<\/strong><\/p>\n\n\n\n

This means that South African taxpayers will be slowly and quietly boosting the government’s revenues while getting zero relief from the impact of inflation on tax until after the 2027 tax year.<\/p>\n\n\n\n

According to finance minister Enoch Godongwana, the government will boost its tax revenue by R15 billion in the coming year by tapping little taxes where it can.<\/p>\n\n\n\n

Arthur Kamp, Chief Economist at Sanlam Investments, noted that this is generally bad news for South Africans earning an income – but also bad news for companies and businesses who will also be subject to new revenue-raising measures from a government desperate to plug the gaps in the budget.<\/p>\n\n\n\n

“The personal income tax revenue raising measures (in the budget) are material,” Kemp said.<\/p>\n\n\n\n

“The Budget indicates there will be no inflationary adjustment to tax brackets and rebates, or for medical tax credits over the next three fiscal years<\/strong>. <\/p>\n\n\n\n

“This effectively increases personal income tax by a cumulative R58.2 billion<\/strong> over the previous medium-term projection. There is at least some relief in that the general fuel levy will not be increased over the next three years, although excise duties are being raised,” he said.<\/p>\n\n\n\n

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How much you will be taxed in South Africa in 2024 \u2013 based on what you earn<\/a><\/blockquote>