No increase in taxes for individuals

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Individual taxpayers are breathing a sigh of relief following the 2024 Budget Speech by Finance Minister Enoch Godongwana. Godongwana announced no increase in personal income tax brackets.

However, the minister has proposed tax increase on tobacco and alcoholic beverages as some of the measures to alleviate fiscal pressures which will raise R15 billion.

Godongwana says government is still discussing options for a replacement for the R350 grant and the balance between policy options to support higher employment.

Last year, Treasury proposed the extension of the social relief of distress grant until the 2024/25 financial year. Godongwana says any extension of the grant, or any replacement thereof, needs to be funded by a new revenue source or reprioritization of other spending items.

“Work is currently under way to improve the COVID-19 Socia Relief of Distress (SRD) Grants by April this year, National Treasury will work with the Department of Social Development.”

Finance Minister has used his Budget Speech to reiterate government’s commitment to allow workers to access a portion of the pension savings from the 1st of September this year. The two-pot retirement system will allow workers to access a once-off R30 000 from their pensions fund. Government will raise an estimated R5 billion in taxes through members accessing the once off withdrawal.

“From 1 September 2024, the first cash withdrawal could be made from the savings pot.”

Government expects the number of grant beneficiaries to jump from 18. 8 million people to 19. 7 million.

The figures exclude COVID-19 SRD Grant recipients.

Child support grant and old age grant make up nearly 60 % of the total grant expenditure over the next three years.

The old age grant, war veterans grant, disability grant and care dependency grant will all increase by R90 in April 2024 and another R10 in October 2024. The foster care grant will be added by R50 in April 2024, and the child support grant will rise by R20 in April 2024.

“To keep the pace with inflation and increase access, permanent social grants are increased. An increase of R100 to the old age, war veterans grant,” says Godongwana.

Video: 2024 Budget Speech

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