We would like to extend out thanks to Allan Gray for providing the content for this summary of the South African National Budget presented to Parliament yesterday, 22nd February 2023.
Key Changes
Relief for individual taxpayers
The personal income tax brackets and annual tax rebates will be adjusted by 4.9% in line with expected inflation. Like last year, there will be no increase in the general fuel or Road Accident Fund levies.
Increases to the retirement lump sum tax brackets
The tax brackets for retirement lump sums (both before and at retirement) will be increased by 10%. The tax rates will remain unchanged.
Renewable energy tax incentives
To promote additional electricity generation, individuals who install rooftop solar panels will be entitled to a tax rebate of 25% of the cost of the panels, up to a maximum of R15 000. This incentive will only be available for one year and is not available for inverters or batteries.
Rise in excise duties
Excise duties on alcohol and tobacco will increase by 4.9% in line with expected inflation.
Comprehensive Summary
For more information on the full range of tax changes and incentives and the associated impact of financial planning for every South African, click on the link below.
Allan Gray Budget Speech Update, 22nd February 2023
If you have any concerns around the possible impact to your personal portfolio, kindly contact us and we will be happy to assist you.
Best regards
The Hansmeyer Team