Today, February 21, 2024, Finance Minister Enoch Godongwana delivered the annual Budget Speech. He faced intense scrutiny as he aimed to reconcile spending priorities with the limited resources available to the National Treasury. Highlighting themes of debt stabilisation, challenging budgeting choices, and fiscal constraints, making the speech one of the most significant since 1994, especially with upcoming elections on the horizon.

• No inflationary adjustments to Personal Income Tax brackets, rebates and tax thresholds
• Increase of between 6.7% and 7.2% in excise duties on alcoholic beverages
• Increase of between 4.7% and 8.2% in excise duties on tobacco products
• Introduction of new sin tax on nicotine and non-nicotene solution for electronic delivery systems
• Electrical and hydrogen-powered vehicle tax incentive to be introduced for manufacturers in 2026
• A global minimum corporate tax at 15% which applies to large multinational group of companies to be implemented

Amendments to rates, taxes, levies & grants:

1. Subsistence allowances and advances for travel within South Africa are adjusted to R548 for meals and incidentals and R169 for incidentals only.

*The subsistence allowance rates for travel outside South Africa are published in the Government Gazette.

1. The daily allowance for business travel on day trips is adjusted to R169 for meals and incidentals only, slight increase from the previous year:

1. Sin Tax is adjusted to meet the core inflation rate and the introduction of new sin tax for nicotine and non-nicotine solution for electronic delivery systems
   

1.  19.7 million people to receive social grants, which means increase for social grants as per table below:

• The Corporate Income Tax rate remains unchanged at 27% (PSP company rate)
• The Income Tax rates for trusts (other than special trusts) remain at 45% (PSP trust rate)
• VAT rate remains unchanged at 15%
• No change to Personal Income Tax brackets, rebates and tax thresholds:

Medical scheme fees tax credits

1. The rate per kilometre in respect of motor vehicle is fixed at R4.64

*No updated rate published at the time of printing

• For those needing to calculate a travel allowance, the table for calculating the actual rate per kilometre or travel allowance is:

1. No adjustments to the Employment Tax Incentive (ETI) table announced

Employment Tax Incentive (ETI) rates 2024/2025

• Income Tax for Small Business Corporations remain unchanged as per table below:
  

• National Health Insurance implementation
• Minister of Electricity or related plans for sustained electricity plans
• Further cryptocurrency regulations

In conclusion, as the finance minister emphasizes, our economy faces significant risks and increasing uncertainty. Bold actions are necessary, requiring us to set aside fear and make tough choices to bridge the gap between our present challenges and future goals.