Finance minister Tito Mboweni has delivered his #Budget2020 speech. Here are some of the salient points affecting our wallets.
Tax relief
South African taxpayers can let out a sigh of relief. They have been spared from any significant tax increases for the 2020 tax year.
Fuel levies
Increases of 25 cents per litre to the fuel levy, which consists of a 16 cents per litre increase in the general fuel levy and a 9 cents per litre increase in the RAF levy.
Tax free savings
The annual contribution limit to tax-free savings accounts is increased by R3,000 from 1 March 2020.
Sin tax
Excise duties on alcohol and tobacco are increased by between 4.4 and 7.5%. Also, government will introduce a new excise duty on heated tobacco products, to be taxed at a rate of 75 percent of the cigarette excise rate with immediate effect.
Green tax
The plastic bag levy will go up 25 cents.
Medical aid tax credits
After a freeze last year, tax credits will increase R310 to R319 per month for the first two beneficiaries, and from R209 to R215 per month for remaining beneficiaries.
