Minister of Finance, Enoch Godongwana, delivered his maiden Budget Speech on Wednesday, 23 February 2022. We have put together some highlights and handy tips to help you plan your budget better and ensure you can still achieve your financial goals.
Economic growth
The pandemic, changes in the global environment along with our own unique challenges have had a significant impact on the low economic growth, growing unemployment rates and mounting debt.
The world economy is expected to grow by 4.4% this year. This is lower than the anticipated 4.9%. South Africa’s economic growth estimate for 2021 has been revised to 4.8% from 5.1%.
Personal Income Tax
The personal income tax brackets and rebates will be adjusted by 4.5%, in line with inflation.
Medical tax credits
Medical tax credits will increase from R332 to R347 per month for the first two members, and from R224 to R234 per month for additional members.
Fuel Levies
No increases will be made to the general fuel levy on petrol and diesel for 2022/23. There will also be no increase in the Road Accident Fund levy.
Excise duties
Excise duties on alcohol and tobacco will increase by between 4.5% and 6.5%.
If you are a smoker, this is how you’ll be affected:
- A packet of cigarettes will cost an additional R1.03;
- 25 grams of piped tobacco will cost an extra 37c; and
- A 23-gram cigar will be R6.77 more expensive.
For alcohol, these are the changes:
- A 340ml can of beer or cider will cost 11c more;
- A 750ml bottle of wine will be 17c more expensive;
- A bottle of sparkling wine will cost an additional 76c; and
- And a bottle of spirits will be R4.83 more expensive
Multiply Your Money
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Multiply Money can help you save towards your dreams by enabling you to set personalised savings goals and track your progress towards them on the Multiply Money app. While you’re at it, make sure you read this article on how Multiply Money can help you with daily expenses.
