Compared to significant tax increases in the last four years’ Budgets, the latest delivered by Finance Minister Tito Mboweni on Wednesday appears to show an acceptance that taxation levels in SA have reached a ceiling, says Melanie Milleskie, tax expert at Deloitte Africa.
Milleskie believes Budget 2019 was about hard facts and figures, sending a clear message that the economic backdrop should be acknowledged – and with growth stimulus and addressing government debt in the foreground.
“It is clear that individuals are significantly taxed in South Africa, and it is very important for taxpayers to feel they are taxed fairly.
“This must have weighed heavily in the decision not to raise personal taxes this year,” she said at a post-Budget event hosted by Deloitte Africa in Cape Town.
“Personal income tax continues to be a significant contributor to SA’s tax revenue. Although Mboweni did not adjust personal income tax brackets, any effective relief will be diluted due to inflation in the higher tax brackets.”