Chairperson, the Rates and Monetary Amounts and Amendment of the Revenue Laws Bill makes no provision for the effects of inflation on the income of South African taxpayers. The tax brackets have not been adjusted and so annual salary increases received by employees to compensate for inflation has a potential of pushing people into new tax brackets.
Effectively, a person could end up earning less after the annual increases because of the increase tax burden brought about by the bracket creep. This also affects other forms of income on which tax is paid but which is subject to inflation adjustments. This is effectively a stealth tax and while the DA understands the need to