25 Feb National Budget Summary 2022
National Budget Summary 2022On 23 February 2022, Finance Minister Enoch Godongwana presented his first Budget Speech. While there are tax increases in certain areas, the proposed budget mainly focuses on strengthening the financial foundation of businesses and individuals. In line with this, Godongwana claims that the budget strikes a critical balance between saving lives and livelihoods, while supporting inclusive growth.
When introducing the tax proposals of the budget, the Finance Minister stated “Now is not the time to increase taxes and put the recovery at risk! Accordingly, we have decided to keep money in the pockets of taxpayers.”
Budget highlights
- The corporate tax rate will be reduced from 28% to 27% for tax years ending on or after 31 March 2023.
- For the first time since 1990, there will be no hike in the fuel or Road Accident Fund levy.
- The monthly benefits for employers under the employment tax incentive will be increased by 50%
- The personal tax bracket and rebates will be adjusted by 4.5% in line with inflation.
Tax Rates
Taxable Income (R)Rate of Tax1 – 226 00018% of taxable income226 001 – 353 100R40 680 + 26% of taxable income above R226 000353 101 – 488 700R73 726 + 31% of taxable income above R353 100
488 701 – 641 400R115 762 + 36% of taxable income above R488 700641 401 – 817 600 R170 734 + 39% of taxable income above R641 400817 601 – 1 731 600R239 452 + 41% of taxable income above R817 6001 731 601 and aboveR614 192 + 45% of taxable income above R1 731 600
