It wasn’t all doom and gloom in this year’s National Budget, but will it be enough for sukkelling South Africans?
Finance Minister Enoch Godongwana said the general fuel and Road Accident Fund (RAF) levy would not be increased – for the first time since 1990 – as the government aimed to support households, and in light of already high fuel prices.
The minister announced an increase in social grants across the board and the R350 Social Relief of Distress Grant has been extended by a further 12 months until March 2023.
“For the 2022-23 fiscal year, the old age, war veterans, disability and care dependency grants will increase by R90 in April and a further R10 in October.
“The foster care and child support grants will increase by a once-off R20 in April.”
Old age pensions, disability and care dependency grants were increased to R1985, while the child care grant is up slightly to R480.
The bad news, as always, is that sin taxes were increased.
Godongwana said there’s an increase excise duties on dop en entjies by between 4.5 and 6.5 percent for 2022/23.
“The targeted excise burden for a 750ml bottle of wine will be 17c more expensive; a 340ml can of beer or cider will be 11c more; a bottle of sparkling wine will cost an additional 76c; and a bottle of spirits will be R4.83 more expensive.
“Cigarette prices will increase by R1.03; 25g of piped tobacco will cost an extra 37c, and a 23g cigar will be R6.77 more.”
He also targeted vapers, announcing an increase of at least R2.90 per ml to both nicotine and non-nicotine solutions.
For cash-strapped students, the minister has pumped an additional R32.6 billion into the National Student Financial Aid Scheme (NSFAS).
The fiscus has been under pressure but he said higher education was one of the government’s priorities.
In the Budget Review, it was stated that a new funding model for students would be introduced next year, however no further details were provided.
Godongwana also gave provincial departments of education R24.6 billion to cover the shortfalls in the payment of teachers.
He furthermore adjusted personal income tax brackets and rebates to take inflation into account, which is mainly aimed at middle-income earners.
Corporate income tax would be cut from 28% to 27%.
“The adjustments will mean that the annual tax-free threshold for a person under the age of 65 is to increase from R87300 to R91 250,” he said.