Overview

The 2024 budget presents a mixed economic outlook, with the 2023 GDP growth revised down to 0.6%, largely due to power cuts and infrastructure challenges. However, there’s a slight improvement projected for the medium term, with growth expected to reach 1.3% in 2024 and 1.6% in 2025. The government remains focused on reducing the budget deficit from 4.9% of GDP in 2023/24 to 3.3% by 2026/27, aiming to stabilize debt by 2025/26. No adjustments to personal income tax brackets or medical credits are proposed, but there will be tax increases totaling R15 billion and a global minimum corporate tax rate of 15% will be implemented.

SARS continues to boost revenue collection through enhanced compliance measures, including AI-driven assessments that prevented over R60 billion in fraudulent refunds. Key energy reforms include the Electricity Regulation Amendment Bill, which aims to create a competitive electricity market, and solar tax incentives allowing individuals to claim 25% of solar panel costs, capped at R15,000. These measures align with South Africa’s broader goals of fiscal consolidation, economic reform, and sustainability.

Learning Objectives

• Understand the key fiscal strategies outlined in the 2024 budget, including deficit reduction and debt stabilization plans.
• Gain insight into the proposed tax changes, such as the R15 billion increase in tax revenues and the implementation of the global minimum corporate tax.
• Acquire knowledge on the updated excise duties for alcohol and tobacco, and the unchanged personal income tax brackets.
• Learn about SARS’s enhanced revenue collection measures and the role of AI in preventing tax fraud and increasing compliance.
• Understand the solar tax incentives and other energy-related reforms, such as the Electricity Regulation Amendment Bill, aimed at fostering sustainable growth.

Content

• FATF published latest update on South Africa’s status on 23 Feb 2024
• Initially 22 action points noted in Feb 2023 due to deficiencies in AML/CFT
• Deadline to address issues between 02/2024 and 01/2025
• On site visit in April/May 2025 to confirm assessment and make recommendation in June 2025