Minister of Finance, Mr Tito Mboweni, delivered the National Treasury’s budget for 2020/2021 this afternoon. The following amendments stand out: • Above inflation adjustment to personal income tax brackets. (This was not done last year) • Transfer Duty exemption increased to R1 million. • Inflationary adjustment to transfer duty rates. • Allowable increase to tax free savings increased from R33,000 to R36,000. • Sunset clauses in respect of certain corporate incentives. • Limitation placed on use of assessed losses. • General fuel levy increases by 16 cents per litre on 1 April 2020. • Increased excise duties on tobacco and alcohol. • Plastic bag levy increases to 25 cents per bag. Transfer Duty rates effective from 1 March 2020 are as follows:
Value of property Rate Up to R 1 000 000 0% R1 000 001 – R1 375 000 3% of the value above R1 000 000 R1 375 001 – R1 925 000 R11 250 + 6% of the value above R 1 375 000 R1 925 001 – R2 475 000 R44 250 + 8% of the value above R 1 925 000 R2 475 001 – R11 000 000 R88 250 +11% of the value above R2 475 000 R11 000 001 and above R1 026 000 + 13% of the value exceeding R11 000 000