Budget Speech Highlight for 2024/2025
The Budget Speech for 2024/2025 has been done on 21/02/2024, with very little highlights worth mentioning. This is typical of an election year ahead.
Below some of the notable point of budget speech.
1.Personal income tax tables
This was a sneaky one done, by keeping the tax tables the same as the prior tax period. What this effectively means, is that you will keep more income tax (PAYE) monthly because the tax tables do not make provision for inflation. This will also be having a carryover effect to following years.
At least this is a way of including the biggest portion of the middle class, to raise tax flowing into the fiscal.
2.Medical aid tax credits
Similarly to the personal income tax tables no adjustments has been made for inflation.
Amounts remain the same on R 364 for each of first to persons on the medical aid and R 246 for any additional dependents.
3.Small Business Corporation income tax scales
Similarly to the personal income tax tables no adjustments has been made for inflation.
4.Renewalble energy
4.1
The tax incentive for primary residence for individuals will end on 29/02/2024, with no further extension. In my belief this was a dead horse to start with, as the benefit was not in line for what most private homes would invest in a solar system.
4.2
For businesses, the Section 12B allowance will continue until 28/02/2025, with an allowance of 125% of the investment in renewable energy.
5.Sin taxes
Increase of between 6.7 and 7.2% on excise duties on alcohol beverages and between 4.7 and 8.2% excise duties on tabaco products.
6.Electronic and hydrogen powered vehicle tax incentive
This will be introduced for manufacturers in 2026.
Just something to take note of, which will make no difference to the majority of South Africa.
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