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COMMON TAXES YOU PAY
1. INCOME TAX Personal income tax brings in the most revenue for the government – more than VAT and more than corporate tax (not listed here). In the 2022/23 tax year, the government expects to receive about R588 billion from income tax, just over a third of the R1.6 trillion it expects from all taxes and duties. If you are below 65 years of age and earn less than R91 250 for the year, you won’t pay any income tax. (See pages 8 & 9.)
2. VALUE-ADDED TAX (VAT) This is a tax of 15% on almost everything you buy, so the more you buy, the more goes to SARS. Essential services and goods that are exempt include public transport, accommodation, illuminating paraffin, brown bread, maize meal, samp, dried mealies/ beans/lentils, tinned pilchards/ sardines, milk and milk powder, rice, fruit and vegetables, vegetable oil and eggs. Government expects R440 billion from VAT this tax year.
3. FUEL LEVIES For each litre of petrol that goes into your tank, you pay the government a general fuel levy of R3.85 (R3.70 per litre for diesel), plus the Road Accident Fund levy of R2.18 per litre (petrol and diesel), totalling R6.03 a litre. At petrol currently priced at about R21 per litre, over 30% of your fuel bill is tax. While you may think this is high, in parts of Europe the ratio is 60%.
