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“The Aloe Ferox survives and thrives when times are tough. It actually prefers less water. It wins even when it seems the odds are against it. “
Tito Mboweni
In a surprise move Minister Mboweni made no dramatic tax proposals to balance the books. In fact a number of proposals will actually reduce personal income tax, and, in the longer term, corporate taxes could be reduced.
The budget highlights are as follows:
- Personal income tax
- Relief through an above inflation increase in the brackets and rebates.
- Medical tax credits
- Increase in medical credits.
- Foreign remuneration exemption
- Exemption will be limited to R1.25m from 1 March 2020.
- Corporate interest on debt
- Deductions to be limited to combat base erosion and profit shifting.
- Corporate assessed losses
- Offset against taxable income limited to 80% of taxable income.
- Fuel levy
- Increased by 25c/litre:
- 16c/litre increase in the general fuel levy
- 9c/litre increase in the RAF levy
- Tax-free savings investments
- Annual contribution limit increased to R36 000.
- Excise duties
- Alcohol and tobacco duties increased by between 4.4 and 7.5 per cent.
- Transfer duty
- Brackets will be adjusted for inflation from 1 March 2020.
- Carbon tax
- Rate will increase from R120 per tonne to R127.
- Plastic Bag Levy
- Proposal to raise the levy to 25 cents per bag effective 1 April 2020.
- Increased by 25c/litre:
“With confidence we lay our case before the whole world, whether we win or die, freedom will rise in Africa, like the sun from the morning clouds”
