Hon Chairperson, hon members, this Bill forms part of the annual tax proposals announced by the Minister of Finance in the Budget Speech that was made earlier this year. Of course, these announcements are given effect to by Tax Bills tabled during the course of the year.
Inter alia, the Bill provides tax relief for individuals who pay income tax by adjustments to the personal income tax brackets. This partially accommodates for fiscal drag. The total relief provided for amounts to R7 billion. Although the personal income tax brackets were not fully adjusted for inflation in 2013-14, it should be noted that over the last decade and a half, personal income tax brackets have been adjusted above the annual rates of inflation, thereby, over the medium term, providing both for fiscal drag and real income relief.
The monetary amounts on the monthly medical tax credits are increased in line with inflation, thereby maintaining the real value of medical tax relief for individuals. The monthly tax credits will be increased from R230 to R242 for each of the first two beneficiaries, and from R154 to R162 for each additional beneficiary, with effect from 1 March 2013. These medical tax credits provide for a more equitable tax relief dispensation and make medical scheme membership more affordable for middle-income earners.
The Bill provides income tax relief for small businesses. The monetary brackets of the graduated income tax table for small business corporations were increased, and an additional lower 21% income bracket is introduced. In addition, the monetary annual turnover amount for a qualifying small business corporation is increased from R14 million to R20 million per annum.
The Bill also provides for increases in the monetary amounts of various specific indirect taxes. Tobacco excise duties are increased between 5,8% and 10%. Excise duties on alcoholic beverages are increased between 5,7% and 10%.
Amid the prevailing economic conditions and the daily struggles for survival by our people, it is our take, as the committee, that this Bill was well thought through and must be supported by all. Re a leboga. [We thank you.] [Applause.]
There was no debate.
Declarations of vote: