Fuel, electric cigs a weighty matter

After the introduction of excise duty for heated tobacco products in the 2020 budget, these will be differentiated by product type.

Products that are normally sold in packs of 10 or 20 sticks will be taxed accordingly while other products will be taxed by weight.

“The National Treasury will soon publish a discussion paper on proposals to tax electronic nicotine and non-nicotine delivery systems. An excise duty will be introduced later this year.”

Personal income tax

The personal income tax brackets and rebates will increase by 5% to provide relief to households by not increasing the individual tax burden.

This adjustment will reduce tax revenue by R2.2 billion but the revenue loss will be compensated by the increase in excise duties on alcohol and tobacco.

The tax relief, however, will benefit lower- and middle-income households and is projected to create R516 billion in tax revenue.

“Personal income tax collection has been affected by rising job losses and lower earnings for those who are employed. Collections remain under pressure due to the elevated levels of unemployment from the pandemic.”

Fuel levy

The fuel levy will increase as per inflation to 15c per litre of petrol and diesel and above inflation of 11c per litre in the Road Accident Fund levy.

It will be effective from 7 April. The fuel levy will increase as follows:

R3.85 per litre of petrol.

R3.70 per litre of diesel.

R2.18 per litre of petrol and diesel for the Road Accident Fund.