“The Aloe Ferox survives and thrives when times are tough. It actually prefers less water. It wins even when it seems the odds are against it. "

Tito Mboweni

In a surprise move Minister Mboweni made no dramatic tax proposals to balance the books. In fact a number of proposals will actually reduce personal income tax, and, in the longer term, corporate taxes could be reduced.

The budget highlights are as follows:

• Personal income tax
  • Relief through an above inflation increase in the brackets and rebates.
• Medical tax credits
  • Increase in medical credits.
• Foreign remuneration exemption
  • Exemption will be limited to R1.25m from 1 March 2020.
• Corporate interest on debt
  • Deductions to be limited to combat base erosion and profit shifting.
• Corporate assessed losses
  • Offset against taxable income limited to 80% of taxable income.
• Fuel levy
  •  Increased by 25c/litre:
    •  16c/litre increase in the general fuel levy
    •  9c/litre increase in the RAF levy
• Tax-free savings investments
  •  Annual contribution limit increased to R36 000.
• Excise duties
  • Alcohol and tobacco duties increased by between 4.4 and 7.5 per cent.
• Transfer duty
  •   Brackets will be adjusted for inflation from 1 March 2020.
• Carbon tax
  • Rate will increase from R120 per tonne to R127.
• Plastic Bag Levy
  • Proposal to raise the levy to 25 cents per bag effective 1 April 2020.

“With confidence we lay our case before the whole world, whether we win or die, freedom will rise in Africa, like the sun from the morning clouds”