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2019 Tax Update
Here are top takeaways from the 2018 Budget Speech:
In his Budget 2019, Finance Minister Tito Mboweni announced that there would be no increases in income tax rates and the VAT rate would remain unchanged. But since no adjustment has been made for inflation, this means if you receive an increase from your employer, you will actually be paying more tax in real terms.
There was no mention of any increases to the limits on tax-free investments or incentives to promote retirement fund savings.
No changes have been made to the monthly medical tax credits for medical scheme contributions.
This measure will have a similar effect to bracket creep and is expected to raise a further estimated R1bn.