Despite escalating pressure to hike taxes to balance government’s finances, no major tax increases were announced during the Finance Minister’s 2024 Budget speech delivered on 22 February 2024.
The budget aims to generate an additional R15 billion in revenue, primarily through personal income tax, by maintaining existing tax brackets, rebates, and medical tax credits without adjustment for inflation. Proposals for the 2024/25 tax year include excise duties on alcohol and tobacco products above inflation rates.
New tax measures include the two-pot retirement reform, incentives for local electric vehicle production, and implementing the global minimum corporate tax. Furthermore, the budget outlines no increases in the general fuel levy and maintains the Road Accident Fund levy.
The implementation date for the two-pot retirement system is 1 September 2024, from which Government expects to raise an additional R5 billion in the 2024 tax year from taxpayers who make use of the once-off withdrawals from their retirement savings.
Regrettably, the solar rebate for individuals, previously announced during the 2023 Budget speech, has been discontinued.
The following rates and rebates all remain unchanged:
The key rate changes include:
Kindly note that these lists are not comprehensive. We encourage you to download ASL’s electronic tax guide from our website for more detailed information, by clicking here.