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Mazars' Annual Budget Analysis
Mazars in South Africa proudly presents their annual budget analysis featuring Diane Secombe as she unpacks the Budget Speech 2024/2025.
As a partner of the French South African Chamber of Commerce and Industry (FSACCI), Mazars brings insightful perspectives on the fiscal landscape.
Minister of Finance, Enoch Godongwana, presented the budget allocation for 2024 to Parliament on Wednesday, 21 February, at 14:00 in Cape Town City Hall.
Diane highlights that the government's focus on tax collection will predominantly target direct taxes, with Treasury aiming to collect close to R15 billion in 2024/25.
"Nearly all of the increase in revenue comes from direct taxes, with no rate adjustments," Diane notes. "Personal income tax is raised by not adjusting the tax brackets, rebates, and medical tax credits for inflation."
The introduction of global minimum tax rules aligned with the Organisation for Economic Co-operation and Development's base erosion and profit-shifting framework is expected to boost corporate tax collection by R8 billion in 2026/27.
"Individual taxpayers earning taxable income of over R1 million contribute 46.8% of all individual taxes collected," Diane adds. "These taxpayers represent 6.7% of all taxpayers."
In the last financial year, SARS allocated R646 million for information and communications technology (ICT), reflecting the agency's commitment to modernization and efficiency.
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