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Financial News

No new taxes, No increase in VAT. SA’s 2024 budget focuses mainly on dipping into rainy day funds and raising sins taxes.

Budget Highlights

When times are tough, sometimes you have to dip into your rainy day funds.

This is what Government is going to be doing (to the tune of R150 Billion) in order to afford to increase and maintain many social grants and afford some pay increases (for the hard working nurses and police force).

While no new taxes were announced and while VAT was not pushed up, there were also few tax breaks announced (other than EV car manufacturers).

Sins tax is going up (not surprising) so drinkers, smokers and vapers will pay more than ever for their vices.

In an interesting move, Tax brackets are not getting adjusted upwards for inflation this year, meaning that many people may jump a tax bracket if they get inflation related increases, which could in turn bring in additional tax revenue.

The Rand Benefits From Conservative Budgeting

The Rand rallied in the wake of the quite sensible budget speech (given the current financial and economic realities SA is facing) and overall the plans outlined in the 2024 budget speech seems to have reduced concerns by investors and international ratings agencies.