Finance Minister, Nhlanhla Nene, has raised the personal income tax rates by one percentage point for all taxpayers earning more than R181,900 per annum.
Delivering his maiden budget speech in Parliament on Wednesday, Nene said this would raise tax “by R21 a month for a taxpayer below the age of 65 with an annual income of R200,000.”
“Those earning R500,000 would pay R271 a month more, and at R1.5 million a year the tax increase is R1105 a month."
Nene said tax brackets, rebates an medical schemes, and medical aid contributions would however be adjusted for inflation.
"The net effect is that there will be tax relief below about R450,000 a year, while those with higher incomes will pay more in tax," said Nene.
The tax-free threshold for individuals would increase from R70,700 to R73,650.
(Sapa)
