To compensate for inflation, personal income tax brackets and rebates would be adjusted to provide income tax relief to households worth R9.3 billion, Pravin Gordhan announced yesterday.
As always, the tax threshold was raised, also to allow for inflation. It was lifted from R67 111 annually to R70 700 for people under 65. For people between 65 and 74 the threshold was hiked from R104 611 to R110 200; for those aged 75 and over from R117 111 to R123 350.
The tax take from personal income tax is expected to be worth nearly R336bn in the 2014/15 financial year.
About 154 000 people with a taxable income of more than R1 million a year will account for 30.7 percent of personal income tax paid in the 2014/15 fiscal year, according to the Budget Review. They represent 2.4 percent of the estimated 6.4 million individual taxpayers.
And about 69 percent of taxpayers with a taxable income below R250 000 a year will contribute 36 percent of all personal income tax revenue.
Income from corporate taxes is estimated at R199bn. Total tax revenue should be worth R994bn. – Ethel Hazelhurst