Electricity levy increase criticised by industry.
Tax payers have received some relief from Finance Minister Nhlanhla Nene who delivered his budget speech on Wednesday, but the net effect will be more pressure on their pockets, says Absa economist Jacques du Toit.
Du Toit said Nene clearly appreciates the pressure on the economy and did what was expected by increasing the marginal personal income tax rates by one percentage point for all taxpayers earning more than R181 900 per annum.
The finance minister provided personal tax relief to lower and middle income groups earning up to R450 000 per annum, but still gains about a net R900 million on personal tax.
Mike Schüssler, chief economist at Economists.co.za, says only workers earning less than R15 000 per month wil receive substantial tax relief.