budget speech 2022 grant increase|budget speech 2022 south africa summary|budget speech 2022 south africa pdf|budget speech 2022 on social grant:Social grant recipients will heave sighs of relief at the announcement that allocations will from April mostly increase by above inflation rates.This is a reprieve from the 2021 Budget rates of between 1% and 3.4%.Delivering the 2022 Budget Speech in Parliament on Wednesday, finance minister Enoch Godongwana said the Department of Social Development will receive the largest allocation of R58.6 billion over the medium term.
“First, to initiate a new extended child support grant for double orphans. This is to encourage the care of orphans within families rather than foster care. Second, to provide for inflationary increases to permanent social grants.”From April, old age and disability grants will increase to R1,985 from R1,890 (5%). In the same period, grants for persons over the age of 75 and war veterans will rise to R2,005 from the current R1,910 (5%).
Budget Speech 2022 South Africa Grants
Contents
Also with a 5% increase, care dependency will rise from R1,890 to R1,985 (5%). With a 1.9% increment, the foster care grant will see the lowest adjustment, rising from the current R1,050 to R1,070 (1.9%).With a 5% increase, care dependency will go from R1,890 to R1,985 (5%). Child support will increase to R480 from the current R460 (4.3%).
The Minister said the social grants function is allocated R1 trillion over the MTEF period to facilitate access to social grants and welfare services to reduce poverty and inequality, protect children, and empower women, youth and people with disabilities.
- R44 billion in 2022/23 to continue the special Covid-19 social relief of distress grant (R350 per beneficiary) for another 12 months.
- A total of R1.6 billion in the two outer years to initiate a new extended child support grant for double orphans, in order to encourage the care of orphans within families rather than foster care.
- A total of R13.1 billion in the outer years to offset budget reductions made in the 2021 Budget and provide for inflationary increases to permanent grants.
In the 2022 Budget Review, the National Treasury said the total number of grant beneficiaries will increase by an average annual rate of 1.5%, from 18.4 million in 2021/22 to 19.2 million in 2024/25.
The department said the numbers exclude the 10.5 million beneficiaries of the special COVID‐19 social relief of distress grant in 2022/23.
“Following the once-off allocation of that grant in 2022/23, the function’s baseline will contract by 3% over the period ahead. Over the medium term, conditions for extending this or a similar grant will include improved targeting to ensure that the people who most need this grant can access it, as well as improved linkages with labour market activation programmes.
“The child support and old age grants together account for more than half of total grant expenditure over the MTEF period. These grants will support a total of 17.2 million beneficiaries in 2022/23,” reads the document.
The Budget Review said over the three-year spending period, an annual average of R1.2 billion will be shifted from the Department of Social Development to the Department of Basic Education as responsibility for early childhood development shifts across these departments.
The National Youth Development Agency will receive R1.5 billion to support skills development and youth employment.
budget speech 2022 south africa summary
Specific excise duties on alcoholic beverages and tobacco products generally increase by between 4.5% and 6.5%, apart from traditional African beer, with no increase. The key specific excise duty increases can be summarised as follows:
Product | Old rate | New rate |
Malt beer | ZAR 115.08 / litre of absolute alcohol (196,86c / average 340ml can) | ZAR 121.41 / litre of absolute alcohol (196,97c / average 340ml can) |
Traditional African beer | 7,82c / litre | 7,82c / litre |
Traditional African beer powder | 34,70c / kg | 34,70c / kg |
Unfortified wine | ZAR 4.74 / litre | ZAR 4.96 / litre |
Sparkling wine | ZAR 15.51 / litre | ZAR 16.52 / litre |
Ciders and alcoholic fruit beverages | ZAR 115.08 / litre of absolute alcohol (196,86c / average 340ml can) | ZAR 121.41 / litre of absolute alcohol (196,97c / average 340ml can) |
Spirits | ZAR 230.18 / litre of absolute alcohol(ZAR 74.23 / 750mlbottle) | ZAR 245.15 / litre of absolute alcohol(ZAR 79.06 / 750mlbottle) |
Cigarettes | ZAR 18.78 / 20 cigarettes | ZAR 19.82 / 20 cigarettes |
Tobacco products in ‘sticks’ | ZAR 7.05 per 10 sticks(ZAR 14.10 per 20 sticks) | ZAR 7.43 /10 sticks(ZAR 14.86 per 20 sticks) |
Cigarette tobacco | ZAR 21.12 / 50g | ZAR 22.28 / 50g |
Pipe tobacco | ZAR 6.26 / 25g | ZAR 6.63 / 25g |
Cigars | ZAR 104.16 / 23g | ZAR 110.93 / 23g |
budget speech 2022 highlights south africa
SUMMARY OF TAX RATES
Companies: Financial years ending on any date between 1 April 2022 and 31 March 2023
Type | Rates of Tax |
Corporate Tax | 28% |
Companies: Financial years commencing on or after 31 March 2023
Type | Rate of Tax |
Corporate Tax | 27% |
Small Business Corporations: Financial years ending on any date between 1 April 2022 and 31 March 2023
Taxable Income (ZAR) | Rates of Tax (ZAR) |
1 – 91 250 | 0% of taxable income |
91 251 – 365 000 | 7% of taxable income above 91 251 |
365 001 – 550 000 | 19 163 + 21% of taxable income above 365 000 |
550 001 and above | 58 013 + 28% of taxable income above 550 000 |
Turnover Tax for Micro Businesses: Financial years ending on any date between 1 March 2022 and 28 February 2023
Taxable Income (ZAR) | Rate of Tax (ZAR) |
1 – 335 000 | 0% of taxable income |
335 001 – 500 000 | 1% of taxable income above 335 000 |
500 001 – 750 000 | 1 650 + 2% of taxable income above 500 000 |
750 001 and above | 6 650 + 3% of taxable income above 750 000 |
Value Added Tax (VAT)
Rates
Rate Category | Rate of Tax |
Standard rate (most local supplies of goods or services) | 15% |
Zero rate (direct export and certain specific supplies of goods or services) | 0% |
Standard rate (non-resident suppliers of electronic services) | 15% |
Registration Threshold
Registration Requirement | Threshold (ZAR) |
Compulsory: taxable supplies exceed in any consecutive 12 months | 1 000 000 |
Voluntary: taxable supplies exceed in any consecutive 12 months | 50 000 |
Individuals and Trusts: Period 1 March 2022 to 28 February 2023
Individuals and special trusts
Taxable Income (ZAR) | Rates of Tax (ZAR) |
1 – 226 000 | 18% of taxable income |
226 001 – 353 100 | 40 680 + 26% of taxable income above 226 000 |
353 101 – 488 700 | 73 726 + 31% of taxable income above 353 100 |
488 701 – 641 400 | 115 762 + 36% of taxable income above 488 700 |
641 401 – 817 600 | 170 734 + 39% of taxable income above 641 400 |
817 601 – 1 731 600 | 239 452 + 41% of taxable income above 817 600 |
1 731 601 and above | 614 192 + 45% of taxable income above 1 731 600 |
Trusts other than special trusts
Type | Rate of Tax |
Trusts | 45% |
Rebates
Type | Amount (ZAR) |
Primary | 16 425 |
Secondary (persons 65 and older) | 9 000 |
Tertiary (persons 75 and older) | 2 997 |
Tax Threshold
Age | Threshold (ZAR) |
Below age 65 | 91 250 |
Age 65 to 75 | 141 250 |
Age 75 and older | 157 900 |
Medical scheme fees tax credit
Persons covered by a medical aid scheme | Tax Rebate (ZAR) per month |
For the first two individuals | 347 |
For each additional dependent | 234 |
Transfer Duty: Applicable where sale of property is not subject to VAT
Taxable Income (ZAR) | Rates of Tax (ZAR) |
1 – 1 000 000 | 0% |
1 000 001 – 1 375 000 | 3% of the value above 1 000 000 |
1 375 001 – 1 925 000 | 11 250 + 6% of the value above 1 375 000 |
1 925 001 – 2 475 000 | 44 250 + 8% of the value above 1 925 000 |
2 475 001 – 11 000 000 | 88 250 + 11% of the value above 2 475 000 |
11 000 001 and above | 1 026 000 + 13% of the value above 11 000 000 |
Estate Duty: Levied on the dutiable value of an estate
Value of Estate (ZAR) | Rate of Tax |
1- 30 000 000 | 20% |
30 000 000 and above | 25% |
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