Public sector employees, however, may not be so pleased by the finance minister's budget speech.
In his budget speech on Wednesday, finance minister Tito Mboweni offered South Africans some much-needed tax relief. In his annual budget speech, the minister announced the decision to not introduce any new tax increases, while adjustments to the individual tax brackets and rebates would result in real personal income tax relief for individual taxpayers.
“This Budget means that a teacher who earns an average of R460,000 a year will see their taxes reduced by nearly R3,400 a year. Hard-working taxpayers, who earn an average of R265,000 a year, will see their income tax reduced by over R1,500 a year,” said the minister.
“Our income tax system is progressive, and the adjustments reflect this. Someone earning R10,000 a month will pay 10 percent less in tax. Someone earning R100,000 a month will pay about 1.5 percent less.”
The budget was not as positive for public sector employees, however, with the minister announcing plans to cut the public sector salary bill by more than R160 billion over the next three years.