[responsivevoice_button rate=”1.4″ pitch=”1.2″ volume=”0.8″ voice=”US English Female” buttontext=”Play”]
Finance Minister, Tito Mboweni, addressed Parliament on 24 February 2021 to table the National Budget Speech. Against the backdrop of the COVID-19 pandemic, the Budget was more optimistic than expected, with tax increases kept to a minimum.
National Budget Speech Highlights
A Healthier Fiscal Position
South Africa is benefiting from a commodity price boom. Compared to the predictions in the October 2020 Medium-Term Budget Statement, tax collections are now expected to be higher by R100bn in 2020/21 and R86bn in 2021/22. Higher revenues have provided space for the Treasury to cancel a proposed R40bn tax increase in 2021/22 and provide some tax relief for companies. Most important is the government’s decision to persist with its fiscal stabilisation programme, including the freeze on public service wages.
Government’s Next Priority
Ensuring access to COVID-19 vaccines is the government’s immediate priority. Access to vaccinations will be provided free of charge, with funding for the vaccine procurement and roll-out being drawn from the national budget.
What can you do?
There are many ways in which you can structure your income to save on income tax. For example:
Contact us to set up a meeting to address these needs.
Disclosure: This article is posted to inform readers and not provide financial advice.
Resources:
Sanlam Intelligence: Budget 2021 should reduce the deficit, not consume more resources
PPS To The Point: SA’s 2021 Budget
Sanlam Invest: Investment Strategy Q4 2020
Allan Gray: Budget Speech Update
