Finance Minister Enoch Godongwana’s recent Budget Speech for 2024 shed light on the financial landscape of South Africa, revealing both challenges and adjustments that will affect individuals and businesses across the nation.
With a forecasted GDP growth rate remaining modest and a significant shortfall in tax revenue, Budget 2024 reflects the need for strategic fiscal management. The absence of inflation adjustments to tax brackets, rebates, and medical credits means individuals may face higher tax burdens, impacting disposable income.
Meanwhile, businesses confront a shifting tax environment, with measures aimed at broadening the corporate tax base and incentivizing renewable energy investments. Furthermore, increases in excise duties on alcohol and carbon taxes, along with the plastic bag levy and carbon fuel levy hikes, underscore the government’s commitment to fiscal sustainability and environmental responsibility.
Here’s a breakdown of the key tax increases outlined in Budget 2024:
- Excise Duties on Alcohol: Various alcoholic beverages will see price increases:
- A 340ml can of beer will go up by 14c.
- A 750ml bottle of wine will see a rise of 28c, while fortified wine will increase by 47c for the same volume.
- Spirits will face a notable hike, with a 750ml bottle seeing an increase of R5.53.
- Cigars will experience an increase of R9.51 for a 23g cigar.
- A pack of 20 cigarettes will rise by 97c.
- Vaping products will see an increase to R3.04 per milliliter.
- Carbon Tax: From January 1, 2024, the carbon tax will rise from R159 to R190 per tonne of CO2 equivalent.
- Plastic Bag Levy: The plastic bag levy will increase to 32c per bag from April 1, 2024.
- Carbon Fuel Levy: The carbon fuel levy will increase to 11c per liter for petrol and 14c per liter for diesel, effective from April 3, 2024.
These adjustments reflect the government’s commitment to fiscal sustainability and environmental responsibility. As Budget 2024 unfolds, it’s crucial for individuals and businesses to stay informed and adapt their financial strategies accordingly. At BDB Chartered Accountants we’re here to provide expert guidance and tailored solutions to help navigate these changes and seize opportunities for growth in the evolving economic landscape.
