2022 Budget – Summary

2022 BUDGET HIGHLIGHTS

• The employment tax incentive will be expanded through a 50 percent increase in the maximum monthly value to R1 500.
• To provide some relief to households, no increases will be made to the general fuel levy on petrol and diesel for 2022/23.There will also be no increase in the Road Accident Fund levy.
• As announced in the 2021 Budget, the corporate income tax rate will be reduced from 28 per cent to 27 per cent, for companies with years of assessment ending on or after 31 March 2023.
• Government proposes to introduce a new tax on vaping products of at least R2.90 per millilitre from 1 January 2023. A new tax will also be introduced on beer powders.
• The carbon tax rate will increase from R134 to R144, effective from 1 January 2022.
• In terms of retirement funds, Regulation 28 of the Pension Funds Act sets out the criteria through which these funds may make investments. Changes have been proposed to these regulations to enable greater investment in infrastructure by these funds. After consultation on these changes, the amendments will be gazetted next month.

 

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