The Alternative Information and Development Centres (AIDC) research estimates the significant fiscal implications of over-inflating personal income tax brackets in South Africa. It argues that while intended to prevent “bracket creep,” this policy has inadvertently cost the national treasury R170-R198 billion in 2024 alone, hindering the funding of essential public services and exacerbating inequality. We advocate for an immediate halt to over-inflation of tax brackets and proposes a more appropriate approach to tax bracket adjustments, balancing the need for fair taxation with the imperative to generate sufficient revenue for a more equitable and prosperous South Africa.
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