With Compliments
Budget Speech Highlights
Budget 2026 will be broadly welcomed by taxpayers, with no increases in either corporate income tax or the VAT rate, and (at long last!) inflation-linked adjustments to personal income tax brackets, rebates and medical tax credits to reduce the “bracket creep” that has been inflicted on us in previous budgets, eroding take home pay by stealth.
There’s more good news in the form of increased limits and brackets relating to contributions to tax-free investments, the retirement funds deduction cap and CGT exclusions. Also increased to take account of inflation were social grants, other than the Social Relief of Distress (SRD) grant which was extended for another year but not increased.
Small businesses will benefit from increases in VAT registration thresholds, the annual turnover limit for turnover tax, and thresholds for micro business turnover tax.
Sin tax and RAF and fuel levy increases were generally in line with or slightly below inflation, except carbon tax with a 30.5% increase.
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