Free Newsletter
 Subscribe Now
 BR Blog

 HOME
South Africa's tax revenue down by R70 billion  Comments
October 27, 2009


  • To read the medium-term budget policy statement - click here to download full document

  • To read the medium-term budget policy statement speech made by Finance Minister Pravin Gordhan - click here to download full document

    Tax revenues for the current financial year are expected to be more than R70 billion down on what was forecast in February, according to the Medium-Term Budget Policy Statement (MTBPS), tabled on Tuesday.

    It says the decline is mainly due to lower-than-expected corporate and value added tax returns.

    "As the economy has slowed, tax revenues have declined and it is expected that total tax revenue for 2009/10 will be R70.3 billion below the forecast presented in the 2009 Budget.

    "Most of this decline is the result of lower VAT and company income tax receipts in line with reduced business activity and lower house hold spending," the MTBPS states.


    It warns the SA Revenue Service (Sars) is increasing penalties for tax evasion, particularly among higher earners.

    "To ensure fairness and equity in the tax system, Sars is increasing penalties for those who do not pay their fair share of taxes.

    "The present penalty regime is too lax and has been revised, requiring higher penalties on people with higher taxable earnings."

    The MTBPS says tax revenue is expected to recover over the medium-term as the economy picks up.

    "Tax revenue is expected to reach 26.2 percent of GDP by 2012/13, driven by a recovery in household consumption and corporate profits, and supported by measures to broaden the tax base."

    According to the document, gross tax revenue for the current financial year will be R589 billion.

    Medium-term estimates show this figure rising to R651 billion in 2010/11, R732.9 billion in 2011/12, and R816.7 billion in 2012/13. - Sapa

  • Showing page 1 of 1 comment pages, 8 total comments
    15 Weeks ago Concerned Citizen wrote :
    It is sad that the government has lost the plot, or maybe they never did actually understand. Because they are 70bn down, it is the tax payer that has caused the problem. A simple but scary FACT 5 million tax payers, 13 Million on some form of grant. Now that is Scary
    15 Weeks ago DrTruth wrote :
    I like how SARS refer to revenue collection these days... like they're a legitimate business or something.... meanwhile they are just leaches of the worst kind..... The collect money for a government that in turn squanders our money on corrupt deals, self gratification and useless parties.... and in turn all the government delivery vehicles simply run into more debt and in turn charge us more for their non delivery????????? what the hell is wrong with this picture???
    15 Weeks ago Anonymous wrote :
    Are there any idiots in government that can ACTUALLY see anything changing in the near future, except that the working are going to pay more. Guys and dols, do yourself a favour and get the hell out, out of the rand currency at least. One statement devaluates the rand by 3.91 % in ONE DAY. How many days like this can we actually afford. Except if you are in the export bussiness. I wonder who places these trained idiots in government?????? Somebody earlier quoted that they are already on the gravy train, so they do not care, they will just increase their salaries. Well if you can not beat them join them, voting ANC from now and forever, however long that may be......I wonder if there is actually ONE politician in Government focussing on getting ONE thing done while they are there, except how much money they will make.
    15 Weeks ago Anonymous wrote :
    there is no point in trying to squeeze more taxes out of the public who is struggling as funds disappear without trace and never get used to benefit poor. billlions of rands have been lost on arms deals, 2010 stadium and tenders,mismanagement, R1m bmws the list goes on
    15 Weeks ago Nigel wrote :
    Interesting, how can the powers that be, get their budgeting so wrong. If I recall over the past few years there has been an over recovery of taxes, It is becoming patently clear that a lot is being hidden from the tax base; Question that begs answering, is how do they intend recovering this massive shortfall, I can only see another round of increased taxes, fuel levies, and dare I suggest an increase in VAT. Watch this space!
    15 Weeks ago Anonymous wrote :
    With a country of 6 million registered tax payers supporting >40 million people of course chaos follows. Investment will drop and overtaxed skilled workers will seek greener pastures. Get the lazy ass, welfare robbing , space wasting , always on strike or demanding this and that , average South African working. Even if it is a low paid job. Decrease income tax and increase vat on non essential items. i.e: do not tax all foods, government services, municipal services,etc..... Vat on luxury stuff 25%. The the poor will benefit and those who spend will pay.
    15 Weeks ago Juan wrote :
    Yes and STILL government officials buy brand new bmw's
    15 Weeks ago BT wrote :
    You forgot to add the R30 Billion generated by temp employees through legitimate Labour Broker companies that will be lost, imagine the vat generated by 500 000 workers, all that will be lost too! amazing how these fools think!!
    HAVE YOUR SAY
    Please enter your comment into the text box below.
    Note: all comments are moderated (see our moderation policy) and may take some time to display, or may not appear at all.
    If you would like to use an alias, please type it below. If you do not enter an alias you comment under a Anonymous byline.
    Type your email address below - your comment will not be accepted without it. This is required as part of our moderation guidelines, but your address will not be published or distributed.
    Lastly, to help fight spam, enter the letters in the image below as you see them.

         

     OPINION/ ANALYSIS
     Business Watch
    Vodacom hanging on to secret report, for now
    The secrecy around a damning report over allegations of nepotism and fraud is continuing with Vodacom's plans to challenge the subpoena.[Full Story...]

     
     Home
    SA's inflation targeting band needs to be widened
    Despite South Africa experiencing a severe recession recently, one that had likely not ended in the labour market by the end of last year, inflation was 6.3 percent year on year in December.[Full Story...]

     
     The Diary
    McDonald's now speaks Italian
    Fast food chain McDonald's has teamed up with the Italian government to cook up a hamburger with a national twist, but the unusual initiative is giving some food lovers cultural indigestion.[Full Story...]

     
    More Opinion & Analysis stories

     NEWS BY SECTOR
     International
    Video: Greece strike
    Greek public workers prepare to strike Wednesday against government cutbacks, while the Greek prime minister meets with French President Nicholas Sarkozy [Full Story...]

     
     International
    Video: Prague enjoys a vinyl revival
    One Czech record manufacturer is busier than ever producing vinyl records for more than 60 countries worldwide. [Full Story...]

     
     International
    Video: Toyota City feels the pain
    With the top-selling Prius joining a massive recall, Toyota City -- named after the automaker -- is feeling the pain of its namesake. [Full Story...]

     
     International
    Video: Opel plans to break even
    Opel unveils revamp plan in drive for state aid. [Full Story...]

     
     Company News
    Absa to sell its stake in Pinnacle to Trilinear
    Pinnacle Point has announced that Absa has agreed to sell its entire 39 percent stake in Pinnacle to Trilinear for R150 million.[Full Story...]

     
    More Sector Reports stories


    BUSINESS SERVICES
    Awesome UK Lotto's
    Business Directory
    Car Insurance
    Car Insurance for Women
    City Guide
    Insurance Quote
    Life Insurance
    Life Insurance for Women
    Maps & Direction
    Medical Aid
    Meetings Africa
    Mobile Business Directory
    Online Shopping
    Personal Loans
    Play Huge Lottos
    Property Search
    Travel Specials

    MOBILE SERVICES
     Get Business Headlines & Indicators
     on your phone - dial *120*IOL*5#
     Click here to find out more (SA only)




    News


    Markets


    Technology News


    Company News


    International


    Today's Quote
    "Make no mistake, they are bowed, but not completely beaten" Who said that?


    Business Forum
    Keep an eye on the stock exchanges - and your investments - from our markets page.


    Weekly Interview
    Belt tightening has made a dent even in those industries aimed at making people look prettier, perkier, poutier and, of course, younger.
    Read more ...