Tax revenue of R275.4bn in the first quarter of the financial year to end-June was R13.1bn less than the printed estimate, the South African Revenue Service (SARS) will report to Parliament on Wednesday. This will confirm expectations that tax revenue for the year will fall far short of the target because of economic stagnation. The Treasury’s revised projection for tax revenue for 2016-17 will be made known when Finance Minister Malusi Gigaba presents the medium-term budget policy statement in Parliament on October 25. Treasury officials have confirmed that revenue collections are likely to fall short of budget targets. Some estimates put the shortfall as high as R50bn. SARS executives will brief members of the parliamentary standing committee on finance on the tax authority’s first-quarter performance. Personal income tax came in at R104.4bn for the quarter, against a target of R110bn. Corporate income tax was R54bn (R57bn target), dividend tax R7.2bn (R9.5bn), value-added tax (VA...
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