Finance Bill 2024: Quick Facts You Can Use Today
The government just dropped the Finance Bill 2024 and everybody’s asking what’s new. In plain terms, this bill sets the tax rules, budget numbers and spending priorities for the next year. It affects everything from what you pay on your paycheck to the cost of groceries. Let’s break it down so you know exactly where your money is headed.
Key Highlights of the Bill
First up, personal income tax. The tax‑free threshold is being lifted from R87,300 to R95,500, which means low‑income earners keep a bit more each month. On the other hand, the top marginal rate stays at 45% for incomes over R1.7 million, so high earners won’t see any relief.
Corporate tax sees a slight tweak: the standard rate drops from 28% to 27% for companies with a turnover below R500 million. Bigger firms still pay 28%. The move is meant to help small‑to‑medium enterprises grow and create jobs.
VAT is staying at 15%, but the bill introduces a temporary reduction on basic food items – a 2% cut for the first six months of 2024. That should give a modest price dip on staples like maize meal and bread.
Customs duties on imported cars are increasing by 1% to boost local vehicle production. Meanwhile, the excise tax on tobacco goes up by 5 cents per pack, a step to curb smoking and raise revenue.
Lastly, the government set aside an extra R12 billion for infrastructure, focusing on road upgrades and water supply in rural areas. This spending boost is expected to create thousands of construction jobs.
How the Changes Hit Your Wallet
If you earn below R95,500 a year, you’ll notice a small bump in take‑home pay thanks to the higher tax‑free threshold. It’s not huge, but it helps with everyday expenses like transport and food.
Middle‑income earners (R200 000‑R800 000) won’t see a big tax shift, but the temporary VAT cut on basic foods could shave a few rand off your grocery bill each month. Keep an eye on price tags – the reduction is only for six months.
Small business owners may benefit from the lower corporate tax rate, freeing up cash for hiring or expanding services. If your turnover is under R500 million, plan your budgeting around that 1% saving.
For car buyers, the higher import duties mean new foreign‑made vehicles will cost a bit more. It might be a good time to consider locally assembled options, which could be cheaper and still get you on the road.
Smokers will feel the pinch with the higher excise tax on cigarettes. If you’re trying to quit, this price hike could be a helpful nudge.
Overall, the Finance Bill 2024 aims to balance revenue collection with targeted relief for low‑income earners and small businesses. It’s not a massive overhaul, but the tweaks add up across the economy.
Bottom line: check your payslip, review your business’s tax plan and watch the grocery aisles for that temporary VAT discount. Small adjustments now can save you money later, and staying informed helps you make smarter financial choices.
