South Africa's Finance Minister Enoch Godongwana delivered the highly anticipated 2024 Budget Speech on 21 February 2023, detailing the government's strategies for managing the country's finances in the upcoming fiscal year.
Some key points of the speech:
- No adjustments to the personal income tax brackets and medical tax credits.
- VAT remains at 15%.
- The general fuel levy and the Road Accident Fund levy will not be increased this year, resulting in tax relief of around R4 billion
- Excise duties on alcohol will increase between 6.7 and 7.2 per cent, while duties on tobacco products will increase between 4.7 and 8.2 per cent
- Education sector is allocated an additional R25.7 billion
- Health sector is allocated a total of R848 billion
- Contributions to retirement funds will be split, with one-third going into a 'savings component' and two-thirds going into a 'retirement component'. From 1 September 2024, the first cash withdrawals could be made from the savings pot.
Resources:
The next software update for your payroll, Release 6.2a, is scheduled to be released by 7 March 2024.