Jacques Stander
In light of improvements in tax revenue collections in recent months, government has withdrawn a proposal to introduce tax measures to raise revenue by R40 billion over the next four years.
However, this year it will implement increases to indirect taxes – mainly an 8% increase in excise duties on tobacco and alcohol as well as inflation-linked increases in the fuel levy.
Tax revenue estimates are R99.6 billion higher than what was projected in October 2020 – reducing the tax revenue shortfall to R213 billion.
South Africans have been spared increases on their direct taxes, but they will have to fork out more money for alcohol and tobacco products.
MONEYWEB
app instead?
The annuitisation rules will apply to the non-vested benefits of all pre-retirement funds going forward.
By Jenny Gordon
5 Feb 2021 11:00
Image: Shutterstock
The Taxation Law Amendment Act of 2020 was signed into law by President Cyril Ramaphosa on January 20, 2021. This has enacted the long-awaited legislation which provides for the same annuitisation rules that apply to members of pension funds, pension preservation funds and retirement annuity funds, to be applied to members of provident funds and provident preservation funds, after March 1, 2021 (T Day).
However, the legislation protects the accrued rights of provident fund and provident preservation fund (these funds) members as at T day. This means that: