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Johannesburg - Finance Minister Pravin Gordhan's announcement of tax relief is misleading, trade union Solidarity said on Wednesday.
"As the case was last year, taxpayers will have to cede a larger portion of their income to income tax this year," the union's researcher Piet le Roux said in a statement.
"Any taxpayer receiving a salary increase in 2014 in accordance with CPI [consumer price index] inflation, will actually have to forfeit a larger portion of his taxable income to personal income tax than in the 2013/2014 tax year."
Earlier, Gordhan presented his budget to the National Assembly and announced income tax relief of R9.3bn.
Le Roux said only those who received an increase less than 5.4% this year would cede a smaller part of their taxable income.
For the 2014/15 tax year, the tax threshold and all income tax brackets had been increased by approximately 5.4%. This was lower than the SA Reserve Bank's expected increase in the CPI of 6.3% for this year.
"These adjustments will in fact result in a heavier tax burden, not tax relief," he said.
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