Finance Minister Nhlanhla Nene has warned that tax revenue collection may be lower because of the recession — potentially putting SA’s last investment-grade rating at risk. Speaking at the Tax Indaba in Sandton on Monday, Nene said: “The 2018 budget gave SA a credible path forward to keep an investment grade with one of the three credit rating agencies. “However, there is now a downside risk to tax revenue because of the contraction in the first six months.” The medium-term budget policy statement takes place in October. Nene said growing the economy is “now critical” to expand the tax base. The ability of a government to borrow at reasonable interest rates is underpinned by tax collections, he said. Tax collection has disappointed in recent years, against the background of a slow economy and the inefficiency of the tax administration, said Nene. To make up for shortfalls, Treasury has increased personal income tax in recent years, and this year increased value-added tax (VAT). Stab...

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