2022 Budget Key takeouts affecting your everyday expenses

On Wednesday 23 February 2022, the Minister of Finance Enoch Godongwana delivered his maiden budget to the Nation. Covid-19 has continued to increase volatility and hinder economic growth within the country. The Minister had his work cut out, in delivering a budget that balances expenditure against income, while stimulating the economy. Investors have been eagerly waiting for the 2022 budget speech to evaluate the leadership and plans laid down in protecting and promoting economic growth.

Key takeouts affecting your everyday expenses

Taxes

Personal income tax brackets and rebates will be adjusted by 4.5%, in line with inflation. The adjustments will mean that the annual tax-free threshold for a person under the age of 65, will increase from R87 300 to R91 250. The health promotion levy on sugar will be increased to 2.31c per gram of sugar.

Sin tax

Increases of between 4.5% and 6.5% on alcohol and tobacco will be implemented with immediate effect. A can of cider will cost 11c more, a 750 ml bottle of wine 17c more, a pack of cigarettes R1.03 more, while 25g of piped tobacco will cost an extra 37c and a 23g cigar will be R6.77 more.

Fuel levy

To support consumers and the economic recovery, no increases will be made to the fuel levy on petrol and diesel for 2022/23, providing tax relief of R3.5bn. There will also be no increase in the Road Accident Fund levy.

Plastic bag levy

Plastic bag levy is increased by 3 cents per bag from 1 April 2022.

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