Budget 2020 - People's Guide

27 February 2020WJ Mitchell Blog

During the Budget speech held at the end of February, the Minister of Finance announced tax relief for individual taxpayers, signalling that tax brackets will be adjusted and personal income tax rebates will increase.


In addition, the annual contribution limit for tax-free investments (TFIs) will increase, effective March 2020.


There will be no change to value-added tax (VAT) or corporate tax. 


What were the key changes?


  • Tax relief for individual taxpayers
    Personal income tax brackets will be adjusted and primary, secondary and tertiary rebates will increase by 5.2%.
  • Increase to the TFI annual contribution limit
    The annual limit on TFI contributions will increase from R33 000 to R36 000, effective 1 March 2020.
  • Hike in excise duties and fuel levy
    There will be a tax hike on alcohol and cigarettes of between 4.4% and 7.5%. The general fuel levy will rise by 16c per litre.  


Dowload the People's Guide Budget 2020 Newlsetter.