On 24 February 2021, the Finance Minister, Tito Mboweni, made 2021 budget speech in the Parliament. Most of that relief will reduce the tax burden on the lower and middle-income households. Some of the tax proposals in this budget are given below:
- The corporate income tax rate will be reduced to 27% for companies with years of assessment commencing on or after 1 April 2022. This will be done alongside a broadening of the corporate income tax base by limiting interest deductions and assessed losses.
- With effect from 1 March 2021, the personal income tax brackets will be increased by 5%, which is more than inflation. Tax payable by individuals for the tax year ending between 1 March 2021 to 28 February 2022.
| Taxable Income (R) | Rate of Tax (R) |
| 0 to ZAR 216,200 | 18% of taxable income |
| over ZAR 216,200 up to 337,800 | 26% |
| More than ZAR 337,800 up to 467,500 | 31% |
| Over ZAR 467,500 up to 613,600 | 36% |
| Over ZAR 613,600 up to 782,200 | 39% |
| Over ZAR 782,200 up to 1,656,600 | 41% |
| More than ZAR 1,656,600 | 45% |
- Fuel levies will be increased by 27 cents per litre. And,
- An 8% increase in the excise duties on alcohol and tobacco products.
