The minister delivered his 2017 budget speech in Parliament on Wednesday afternoon, forecasting slightly improved economic growth in the years to come.
As expected he's kept South Africa on its cost-cutting path.
Gordhan says there needs to be equality for all.
“Fellow South Africans if we make the right choices and do the right things, we’ll achieve a just and fair society; founded on human dignity and equality. We’ll indeed transform our economy and country so that we can all live in dignity, peace and wellbeing.”
The minister has made it clear that super-high-income earners will be handing over more of their pay cheque to the tax man from this year.
New tax bracket for super-earners
Gordhan says those earning more than R1.5 million a year will now have to pay 45% tax.
Faced with a personal income tax revenue shortfall of R30 billion due to a slowdown in the economy, government plans to tax high-income earners 45% of their taxable income.
Around 100,000 taxpayers will be affected.
The previous top bracket of 41% was set at just more than R701,000.
Overall, adjustments to the personal income tax tables are expected to raise an extra R16.5 billion.
“We believe in a progressive tax system. Secondly, the tax system is quiet crucial to redistribution in South Africa in view of all the other challenges that we have about economic participation and so on.”
Treasury is offering marginal relief to low-income earners, with the tax-free threshold being raised R75,750.
