2022/2023 Budget Highlights

Written on 01/03/2022
Nexia SAB&T

The Minister of finance Enoch Godongwana tabled his Budget review on the 23rd February 2022. The following were the key tax issues arising.

  • Personal Income tax
    • Inflationary relief through a 4.5 per cent adjustment in the tax brackets and rebates.
  • Employment tax incentive
    • Expanded through a 50 per cent increase to a R1 500 per month.
  • Fuel & RAF levies
    • No change to the general fuel levy or the Road Accident Fund (RAF) levy.
  • Excise duties
    • Increases of between 4.5 per cent and 6.5 per cent on alcohol and tobacco.
  • Corporate Income Tax
    • Effective for tax years ending on or after 31 March 2023 the rate is reduced to 27%
  • Disclosure of wealth
    • It is proposed that all provisional taxpayers with assets above R50 million be required to declare specified assets and liabilities at market value in their 2023 returns.
  • Assessed losses
    • It is proposed that the offsetting of the balance of assessed losses brought forward will be limited to 80% of taxable income for years of assessment ending on or after 31 March 2023.
  • Carbon Tax
    • The first phase will be extended by three years for the period 1 January 2023 to 31 December 2025.
  • Plastic bag levy
    • Increase to 28c/bag from 1 April 2022.
  • Health Promotion Levy
    • Beverages with more than 4g of sugar per 100ml will have a levy of 2.31c/g from 1 April 2022.

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