Budget 2022: Your Share of Billions in Tax Relief and Business Support
Calling it a “good story to tell”, Finance Minister Enoch Godongwana announced, in his first Budget Speech, welcome respite from tax increases, tax relief of R5.2 billion for individuals and businesses, as well as further measures to support businesses in their economic recovery.
These include no increase in the fuel levy, and adjusted tax brackets and rebates for individual taxpayers. For companies, there is a reduction in the tax rate, support in the form of an increase in the Employment Tax Incentive, and a revised support scheme for businesses in distress due to Covid-19.
In this article, we provide a helpful overview of the important tax announcements made, as well as highlight a few issues mentioned in the Budget Speech to be taken note of.
“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.” (Finance Minister Enoch Godongwana)
The 2022 Budget Speech brought some good news and welcome tax relief to personal and business taxpayers,
This is possible thanks to tax revenue collection estimates that exceed the 2021 Budget estimate by R182 billion. Given the improvement in revenue collections, government proposes R5.2 billion tax relief to help support the economic recovery, provide some respite from fuel tax increases and boost incentives for youth employment.
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