- Treasury and the South African Revenue Service on Wednesday published draft tax bills for public comment, due by 28 August 2021.
- The tax proposals include an increase in excise duties on alcohol and tobacco.
- Earlier Treasury also unpacked how a R38.85 billion support package for South Africans amid the Covid-19 pandemic would be funded.
The public can now weigh in on proposed increases on excise duties for alcohol and tobacco, among other tax matters.
National Treasury and the South African Revenue Service (SARS) on Wednesday published for public comment the 2021 draft tax bills, which contain tax proposals made in the 2021 Budget announced on 24 February.
They are the 2021 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, the draft Taxation Laws Amendment Bill (TLAB) and the draft Tax Administration Laws Amendment Bill (TALAB). The bills are to be introduced in Parliament later this year.
Parliament's Standing Committee on Finance and Select Committee on Finance are expected to hold public hearings on the bills. The public comment will be considered before a final bill is tabled before Parliament for consideration.
The draft Rates bill includes proposed changes to the rates and monetary thresholds of the personal income tax and increases of the excise duties on alcohol and tobacco. Fin24 previously reported that government intends to implement an 8% increase in excise duties for tobacco and alcohol.
More details are on the National Treasury and SARS websites. Public comments are due by 28 August 2021.
Earlier Treasury also unpacked how a R38.85 billion support package for South Africans amid the Covid-19 pandemic. Treasury further published details on some tax measures that have been implemented to ease the burden on businesses due to the pandemic as well as recent unrest.
This includes the Employment Tax Incentive, which will now be implemented for another four months - between 1 August and 30 November 2021. Small and medium enterprises will also have their Pay-As-You-Earn tax liability deferred for three months, between 1 August and 31 October. Excise duties on alcoholic beverages have also been deferred for three months - the industry has been hard hit by a fourth alcohol sales ban.