
BUDGET 2024 – All your Budget 2024 Tax updates
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GUEST – Musa Manyathi Director for Tax at Deloitte Africa
Fears that government would hike personal income tax or VAT in this year's Budget proved unfounded. But taxpayers will still be hit in different ways to help plug fiscal holes.
Government is struggling with ballooning debt payments, while its spending – especially on civil servant wages – has also soared in recent years.
Meanwhile, its tax revenue for the past year was R56 billion less than it expected a year ago.
Corporate tax payments took a large hit as companies struggled with load shedding in a weak economy. Tax from the mining sector halved to R39 billion in the first 10 months of the financial year due to lower commodity prices, power cuts and problems at ports.
Income from VAT was weaker due to an increase in refunds.
"High VAT refund payments resulted from increased investment in embedded generation and higher costs of doing business, including the use of more expensive road transport due to operational and maintenance failures in the rail network," Treasury said.
Income from fuel levies rose despite a decision last year to leave the fuel levy unchanged. The higher income was thanks to brisk fuel sales as the demand for road bulk transport increased, Treasury said. More trucks are on the road due to the collapsing railways.
But cigarette tax income remains well below levels seen before the pandemic, when cigarette sales were banned – which saw a boom in black-market trade.
Personal income tax collection has remained buoyant, with salaries and bonuses in the finance sector seeing "strong" growth.
While personal income tax rates have not been hiked, tax tables weren't adjusted for inflation – which means workers will pay more tax due to "bracket creep".
Fears that government would hike personal income tax or VAT in this year's Budget proved unfounded. But taxpayers will still be hit in different ways to help plug fiscal holes.
Government is struggling with ballooning debt payments, while its spending – especially on civil servant wages – has also soared in recent years.
Meanwhile, its tax revenue for the past year was R56 billion less than it expected a year ago.
Corporate tax payments took a large hit as companies struggled with load shedding in a weak economy. Tax from the mining sector halved to R39 billion in the first 10 months of the financial year due to lower commodity prices, power cuts and problems at ports.
Income from VAT was weaker due to an increase in refunds.
"High VAT refund payments resulted from increased investment in embedded generation and higher costs of doing business, including the use of more expensive road transport due to operational and maintenance failures in the rail network," Treasury said.
Income from fuel levies rose despite a decision last year to leave the fuel levy unchanged. The higher income was thanks to brisk fuel sales as the demand for road bulk transport increased, Treasury said. More trucks are on the road due to the collapsing railways.
But cigarette tax income remains well below levels seen before the pandemic, when cigarette sales were banned – which saw a boom in black-market trade.
Personal income tax collection has remained buoyant, with salaries and bonuses in the finance sector seeing "strong" growth.
While personal income tax rates have not been hiked, tax tables weren't adjusted for inflation – which means workers will pay more tax due to "bracket creep".

