Budget Speech 2020: Mboweni announces no change in VAT, tax relief

- Finance Minister Tito Mboweni has delivered his Budget Speech for this year

- Predictions had spoken of a possible tax increase as well as a potential VAT hike

- Briefly.co.za explores the announcements made by the politician on Wednesday

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Finance Minister Tito Mboweni has revealed to South Africa his economic plan for the nation.

Speaking to the National Assembly, Mboweni announced that there would be no VAT increase implemented despite numerous predictions to the contrary.

As for the forecasted hikes in income tax, the minister announced that there would in fact be relief in this regard:

“Those who earn on average R265 000 a year, will see their income tax reduced by over R1 500 a year.”

READ ALSO: Mboweni is a man on a mission and South Africans are delighted

Citizens wishing to purchase property will be happy to hear that properties worth under R1 million will no longer be subjected to transfer duties.

Slight increases in sin taxes were noted with Mboweni announcing the following hikes:

• A pack of 20 cigarettes will be an extra 74c
• A 25 gram packet of pipe tobacco will cost 40c more
• A 23 gram cigar will go up by R6.73
• A 340ml can of beer or cider increases by 8c
• A 750 ml bottle of spirits including whiskey, gin or vodka will rise by R2.89

Mboweni revealed that the International Monetary Fund and the World Bank had been on the mark with their 1.2% growth prediction according to National Treasury.

The minister says that the economy is set to grow by 0.9% over the course of this financial year.

• R80 increase for the old age, disability & care dependency grants to R1 860 per month
• R40 increase for foster care grant to R1 040 per month
• R40 increase for foster care grant to R1040 per month
• The child support grant will increase by R20 to R445

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Source: Briefly News