THE general fuel levy and road accident fund will not be increased this year.
This was said by Finance Minister Enoch Godongwana when he delivered the 2023 Budget Speech to the National Assembly at the Cape Town City Hall on Wednesday, 22 February.
The minister said to ease the impact of the electricity crisis on food prices, the refund on the Road Accident Fund levy for diesel used in the manufacturing process such as for generators will be extended to manufacturers of foodstuffs.
He said this will take effect from 1 April 2023.
Godongwana said the tax revenue collection for the 2022/23 financial year is expected to total R1,69 trillion.
He said this exceeds the 2022 budget estimate by R93,7 million and the 2022 mid-term budget estimate by R10,3 billion.
“Over the medium-term, revenue projection is R6 billion higher that the estimated mid-term budget of 2022. As a result, there are no major proposals in this budget,” he said.
Godongwana said instead of increasing tax, the government will be providing relief of R13 billion.
He said the personal income tax brackets will be fully adjusted for inflation.
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The minister said the government has proposed an increase in the excise duties on alcohol and tobacco of 4,9% in line with the expected inflation.
This means that a 340ml can of beer is increased by 10 cents, while a 750ml of bottle of wine is increased by 18 cents.
A 750ml of spirit will increase by R3,90, while a gram of cigar will increase by R5,47. For a pack of 20 cigarettes, the duty rises by 98 cents.
When it comes to the social grants, the pension and disability will increase by R90 on 1 April and by R10 on 1 October this year.
He said the child support grant will rise from R480 to R510 on 1 October 2023, while foster care grant increases from R1070 to R1130 over the same period.
“R23 billion will be allocated to health and basic education respectively, to cover the shortfall in compensation budgets and to improve services.”
“R8 billion is allocated for basic services through the local government equitable share,” he said.
The minister said they have allocated R14 billion over the medium term to fight crime and corruption.
He said the South African Police Service is allocated R7,8 billion to appoint 5000 police trainees per year.
“The National Prosecuting Authority receives R1,3 billion to support the implementation of the recommendations of the State Capture Commission and the Financial Action Task Force."
Responding to the disaster, Godongwana said in relation to the recent floods and the national disaster declared in various provinces R695 million is available in this financial year for immediate relief and a further R1 billion will be available next year.
