Mboweni announces personal income tax relief, no VAT hike
South Africans can breath a sigh of relief with Finance Minister Tito Mboweni saying there will be no new income tax hikes this year.
Mboweni tabled his budget in the National Assembly on Wednesday.
"To support growth, we propose no major tax increases. Indeed, there is some real personal income tax relief. This budget means that a teacher who earns on average R460 000 a year, will see their taxes reduced by nearly R3 400 a year," said Mboweni.
Value Added Tax (VAT) will remain at 15%, despite many economists predicting that it would be raised to 16%.
The decision not to hike taxes was make due to the country’s weak economy.
The country's national debt is projected to be at R3.56 trillion by the end of 2020/2021, translating into 65.5% of the gross domestic product (GDP).
The deficit is expected to hit 6.3% of GDP this year.