By: Natasha Archary
- No increase in fuel levy
- Excise duties on alcohol and tobacco will increase by between 4.5% and 6.5%
- Budget includes R5.2 billion in tax relief to help support the economic recovery
Now is not the time to increase taxes and put the recovery at risk!
Finance minister enoch godwana
Tabling the 2022 Budget Speech on Wednesday, Finance Minister Enoch Godongwana offered some respite to business and households.
Making the decision to keep money in the pockets of South Africans, the minister shared that it’s not the time to increase taxes and put economic recovery at risk.
In addition, there will be no increases to the fuel levy and a further adjustment to Personal Income Tax and Employment Tax Incentive.
Despite shortfalls in several public education, health and safety, the minister detailed the plan to assist low-income households with social wage support.
Over the next three years, government proposes a R3.33 trillion allocation to assist the vulnerable.
A further R24.6 billion will be set aside for provincial education departments to address the shortfalls in the compensation of teachers.
An additional R15.6 billion is allocated to provincial health departments to support their continued response to COVID-19, and to bridge shortfalls in essential goods and services.
Corporate Income Tax will drop by one percentage point from 28% to 27%.
All Excise Duties increase
The 2022 Budget Speech did hit South Africans with big increases in sin tax, although the alcohol industry pleaded to be spared to help recovery.
South Africans will not pay between 4.5% and 6.5% more for alcohol and tobacco products.
• A 340ml can of beer or cider will cost 11c more;
• A 750ml bottle of wine will be 17c more expensive;
• A bottle of sparkling wine will cost an additional 76c;
• And a bottle of spirits will be R4.83 more expensive;
• A packet of cigarettes will cost an additional R1.03;
• 25 grams of piped tobacco will cost an extra 37c; and
• A 23 gram cigar will be R6.77 more expensive
“In these trying times and without compromising our ability to collect revenue, we have managed, through these tax proposals, to keep money in the pockets of South Africans,” Godongwana concluded.
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