During the Budget Speech the Minister proposed no changes to the personal income tax brackets (with no adjustment for inflation). In fact, it was specifically stated that, to limit the negative impact on economic growth, the Budget proposes no increase in tax rates in any category. Instead, the Minister proposes to increase tax collections by R12,8 billion by not adjusting tax brackets for inflation.

The Budget stated that tax administration problems partly explain poor revenue-collection. The proposal is to improve tax collections by restoring the efficiency of SARS. It was stated that, in the short-term, such improvements may be more effective in raising revenue than further substantial tax increases.

The primary, secondary and tertiary rebates will be increased by 1,1%, providing a small relief for inflation. The primary rebate will increase to R14,220, the secondary rebate will increase to R7,794 and the tertiary rebate will increase to R2,601.

The Minister proposes to increase the tax-free threshold for personal income taxes to R79,000 for taxpayers below the age of 65, R122,300 for taxpayers aged 65 years and older, and R136,750 for taxpayers aged 75 and older.