No increase to income tax rates but sin tax and fuel levy to go up

No increase to income tax rates but sin tax and fuel levy to go up

- Tito Mboweni's budget speech outlined plans to bring in more tax revenue

- These will include upping sin tax and fuel levies

- South Africans will be paying an extra 29c per litre for petrol

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Finance Minister Tito Mboweni has said there won't be any increases to income tax or VAT in the upcoming year.

Instead, sin tax and fuel levies will go up.

Mboweni announced this during his budget speech as part of a plan to raise an additional R15 billion a rand in tax revenue.

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The income tax and VAT rates will remain the same, as part of the government's efforts to decrease the likelihood of price increases.

However, with the sin tax and fuel levy increases, government hopes to bring in R1.5 trillion in tax revenue in the upcoming year, although this below previous predictions.

The fuel levy increase will see petrol costing an extra 29 cents per litre and 30 cents per litre for diesel.

Of this increase, 5c will come from an increase to the Road Accident Fund levy and another 9c from the newly-introduced carbon tax, according to fin24.

VAT, however, will remain at 15%, despite some calls for VAT to be lowered to its original 14%. It was raised to that number last year by Malusi Gigaba.

The sin tax on alcohol will go up by 7.4%, while taxes on tobacco will increase by 9%.

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Finally, the tax-free threshold will be slightly upped, as a way to counteract some of the effects of inflation.

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Source: Briefly.co.za

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