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Padayachy's new income tax formula
3 juin 2023, 14:00
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Padayachy's new income tax formula
In his budget, Renganaden Padayachy announced a new income tax regime which “will be completely progressive” introducing a new gradation in income taxation. For incomes of up to Rs 30 000 (Rs 30 000 x 13 =Rs 390 000 per year) the tax rate will be zero percent with a progressive tax rate following each income threshold. For incomes up to Rs 33 000 month (33 000 x 13 = 430 000, with 2 per cent income tax levied on the Rs 3 000 difference between Rs 30 000 and Rs 33 000) the tax charged under the new formula comes to Rs 60 a month, and so on for each income category. Under the new formula, monthly incomes will be taxed as follows :
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