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South Africa’s Finance Minister Enoch Godongwana proposed to increase governmental revenue by imposing more taxes on tobacco and alcoholic beverages. These are part of a few measures to mitigate fiscal pressures, finance ministry says the government is discussing policy options to support higher employment.
There will be no increase in personal income tax brackets for individual taxpayers in 2024. Last year, the Treasury proposed the extension of the social relief of distress grant until the 2024/25 financial year. Godongwana says any extension of the grant, or any replacement thereof, needs to be funded by a new revenue source or reprioritization of other spending items.
Work is currently underway to improve the COVID-19 Social Relief of Distress (SRD) Grants by April this year, The National Treasury will work with the Department of Social Development. The finance minister added that workers will access a portion of the pension savings from the 1st of September this year.
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The retirement system will allow workers to access a once-off R30 000 from their pension fund. The government anticipates it will raise an estimated R5 billion in taxes through members accessing the once-off withdrawal. The government expects the number of grant beneficiaries to jump from 18. 8 million people to 19. 7 million. The figures exclude COVID-19 SRD Grant recipients. Child support grants and old age grants make up nearly 60 % of the total grant expenditure over the next three years.
