The 2024 budget speech from Finance Minister, Enoch Godongwana, has had an adverse impact on income tax brackets in 2024. Essentially, employees who get a promotion or salary increase risk being pushed into higher income tax brackets in 2024.
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As outlined by Business Tech, an additional R15-billion tax windfall for the government in 2024/25 will help alleviate ‘immediate pressure’ on the ailing South African economy.
INCOME TAX BRACKETS IN 2024
Additionally, there is no inflation adjustment to personal income tax brackets in 2024. However, because these brackets have not shifted, any South African who gets a promotion/salary increase this year could end up paying more tax or risks being pushed into a higher tax bracket. Click HERE for a detailed breakdown from SARS.
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While there was no hike to the General Fuel Levy and Road Accident Fund Levy this year, the minister did see fit to increase other ‘sin’ taxes to fill government coffers. These include alcohol, which will increase between 6.7% and 7.2%, and tobacco products which will increase between 4.7% and 8.2%.
CORPORATION TAX
Moreover, big corporations are going to foot a larger tax bill, too. Godongwana announced a minimum South African corporation tax. Expected to add R8 billion to tax revenues, multinationals that earn more than 750 million Euro (R15 billion) per year must pay a 15% flat tax, effective from 1 September 2024.
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What do you think of these changes to income tax brackets in 2024? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSANews on X and The South African on Facebook for the latest updates.
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