Revenue gap opens up on VAT, corporate tax
Weak economic growth and optimistic past estimates to blame for collection missing budget targets
Revenue collection could fall short by at least R50bn in 2019/2020 if current trends continue and the economy does not markedly improve.
On Friday the Treasury published figures on revenue collection as at the end of July which show that so far the tax take from most taxes is below budget, with VAT and corporate tax the worst performers. The poor revenue performance will put additional pressure on SA’s public finances already strained by the bailout of Eskom, which will require R128bn over the next three years.