Better-than-expected revenue collections could see SA’s tax shortfall come in lower than predicted and limit the need for the R40bn in additional tax hikes to be outlined in the upcoming February budget, provided the trend is sustained, according to advisory firm Deloitte.

An unexpected uptick in revenue collections in November and December 2020, could mean the R312.8bn shortfall for this fiscal year, outlined in October’s medium-term budget policy statement (MTPBS) could be reduced to between R230bn and R240bn, according to Delia Ndlovu, Deloitte’s MD for Africa tax & legal. ..

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