While there was a temporary breather for other taxes including income tax, South Africans are expected to fork out more for alcohol and tobacco.
This was announced by Finance Minister Enoch Godongwana in parliament on Wednesday, hailing the news as good for the majority of struggling citizens.
“Households and businesses are still under financial pressure and are coping with higher obligations, the effects of Covid-19, and increased fuel prices,” said Godongwana.
“Now is not the time to increase taxes and put the recovery at risk. Accordingly, we have decided to keep money in the pockets of South Africans.”
The finance minister added that other government undertakings included a R5.2-billion in tax relief to help support economic recovery, provision of some respite from fuel tax increases, as well as boosting incentives for youth employment.
In terms of personal income tax brackets and rebates, Godongwana said these would be adjusted by 4.5%, in line with inflation.
This will translate into an annual tax-free threshold for a person under the age of 65 increasing from R87 300 to R91 250. Medical tax credits will also increase from R332 to R347 a month for the first two members, and from R224 to R234 a month for additional members.
Godongwana also told MPs that there will be no increase in the general fuel levy.
“In 2021, the inland petrol price breached R20 per litre. The higher prices have put pressure on the cost of transport, food and other goods and services.
“To provide some relief to households, no increases will be made to the general fuel levy on petrol and diesel for 2022/23. This will provide tax relief of R3.5-billion to South Africans.”
Exercise duties on alcohol are set as follows:
- 340ml can of beer or cider will cost 11c more
- 750ml bottle of wine will be 17c more expensive
- bottle of sparkling wine will cost an additional 76c
- bottle of spirits will be R4.83 more expensive
- a packet of cigarettes will cost R1.03 more
- 25g of piped tobacco will cost an extra 37c
- A 23g cigar will be R6.77 more expensive
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