Finance minister Tito Mboweni has delivered his #Budget2020 speech. Here are some of the salient points affecting our wallets.
South African taxpayers can let out a sigh of relief. They have been spared from any significant tax increases for the 2020 tax year.
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.
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.
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.