What the budget speech means for the South African consumer?
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GUEST - Thabani Ndwandwe, Chief Risk Officer at Standard Bank SA
Finance minister Enoch Godongwana has outlined the new tax brackets for personal income taxpayers in his Budget speech 2024. The minister said that the budget proposes tax increases totalling R15 billion for the 2024/25 fiscal year to alleviate “immediate pressures” on the budget.
As part of this, there are no Inflation adjustments to the personal income tax tables and medical tax credits are provided for the year. With tax brackets not being adjusted for inflation, South Africans who got a salary increase this year will end up paying more tax, or even being pushed into a higher tax bracket.
Finance minister Enoch Godongwana has outlined the new tax brackets for personal income taxpayers in his Budget speech 2024. The minister said that the budget proposes tax increases totalling R15 billion for the 2024/25 fiscal year to alleviate “immediate pressures” on the budget.
As part of this, there are no Inflation adjustments to the personal income tax tables and medical tax credits are provided for the year. With tax brackets not being adjusted for inflation, South Africans who got a salary increase this year will end up paying more tax, or even being pushed into a higher tax bracket.
