The Minister Of Finance recently delivered the budget speech, which detailed the state of the economy, public finances, and progress made toward the government's objectives. It's critical to consider how the changes presented by the Minister in his address, will affect your monthly budget.
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Let's unpack the Budget Speech 2023 and find out what you need to know
Electricity has been identified as a significant concern within South Africa, and top economists predict that it will be one of the primary factors that influences economic growth as the year progresses. This year's Budget speech was used to express the adverse effects of the electricity shortage, particularly the inability of businesses to operate at full capacity.
How will electricity relief efforts be carried out?
To relieve pressure on the national grid during ongoing and recurring power outages and blackouts, South African Budget speech 2023 recently declared that the government will facilitate power generation by private businesses and even assist solar-powered households in feeding electricity back into the national grid.
Tax Rebates for Solar
Although many South Africans may believe that a Solar Power installation is prohibitively expensive, the government has included the following in this year's budget speech 2023. Individuals will receive a 25% tax rebate on solar PV panels for a limited time, subject to certain conditions and capped at R15 000 per individual. With these rebates, the government's efforts could help many people obtain solar as a feasible option. Learn more with what’s new at SARS FAQs | South African Revenue Service (sars.gov.za)
Following the Covid-19 lockdowns, the economy briefly bounced back to post 2.5% growth, but the outlook has since deteriorated; between 2023 and 2025, growth is now only predicted to reach 1.4%. This is primarily due to load-shedding and the conflict in Ukraine.
SARS tax rates, duties and levies
The following are the changes made to SARS rates, duties, and levies mentioned in the 2023 budget speech. Individuals can access an updated Tax Rate section on SARS's website following the 2023 Budget Speech for a complete breakdown. Budget 2023 impact on SARS tax rates, duties & levies | South African Revenue Service
- Levies for the Road Accident Fund (RAF)
The Road Accident Fund (RAF) and fuel levies will not increase this year, according to the government, furthermore, manufacturers who now qualify for reimbursements for the (RAF) levy paid on diesel will now include those who produce food.
- Transfer duty relief
Property under R1.1 million will be free from transfer duty, which is good news for individuals seeking to purchase their first home or invest in the real estate market.
- Adjustments on Tax Tables
Tax tables for transfer duty, retirement fund lump sum benefits, and retirement fund lump sum withdrawal benefits have been adjusted to account for the effect of inflation.
- Tax relief for personal income brackets
Giving tax breaks by adjusting personal income tax brackets and rebates to account for inflation.
- Health promotion Levy
The increase in the health promotion levy on beverages from 2.3 cents per gramme of sugar to 2.3 cents per gramme of sugar has been postponed until 1 April 2025.
Stay up to date on what's changing at SARS following the 2023 South African budget speech, and how these changes will affect your personal income and spending.
Due to the unpredictability and scarcity of electricity, the country's economic growth potential may be hampered. The government is working hard to address the situation and find long-term solutions. Other figures have remained consistent, which is a source of relief for many and a very positive conclusion for this fiscal year's plans. With minor adjustments to tax rates, tariffs, and levies, the country and consumers may be able to breathe a sigh of relief.