Johannesburg – The revenue generated by the new personal income tax bracket will still be lower than a 1% increase in VAT, said an analyst.
In a telephonic interview with Fin24, Professor Thabo Legwaila from the University of Johannesburg’s department of Mercantile Law shared his views on the new tax rates presented in the National Budget.
Over the past two years, the personal income tax for the highest income earners increased by five percentage points, up from 40%. He explained that the 45% tax will apply to individuals earning more than R1.5m. There are approximately 100 000 people in the country who earn this much money and would be able to pay the tax, explained Legwaila.