He revised the expected gross tax revenue for the 2013/14 financial year downwards by R3bn to R895bn from his February budget. Revenue collected for the 2012/13 fiscal year amounted to R813.8bn.
Nominal gross tax revenue for the first six months of the year increased by 9.5% year-on-year.
Gordhan said personal income tax collections remained strong‚ mainly because of high wage settlements. The revised estimate of tax revenue from personal income tax is R307bn compared with the expected R306bn from the February budget. The estimated income for the next fiscal year is R340.6bn.
Personal income tax contributed 34% to total tax revenue in 2012/13.
According to Gordhan's statement‚ corporate income tax has been robust although the revised estimate remains virtually unchanged. Gordhan budgeted for corporate income tax of R169.9bn and revised it up to R170bn. The estimated income from company profits in the next fiscal year is R190.5bn.
The contribution by corporate income tax for 2012/13 was 19.8% of the total tax revenue compared with 26.7% in the 2008/09 year.
Value-Added Tax (VAT)‚ which contributed more than 26% to the total tax revenue for the year‚ shrunk in the first six months‚ indicating lower consumer demand and weaker income tax collections in the medium term.
The revised estimate for VAT in the current year is R242.5bn‚ slightly lower than the budgeted R242.99bn. The expectations for next year are more optimistic at R266.9bn.
"The factors driving current buoyancy in other taxes suggest a weaker outlook. This year's sharp depreciation of the rand is unlikely to result in a sustained surge in company profits‚ as cost pressures increase and trade contracts are adjusted‚" Gordhan said.
He said the tax review committee‚ chaired by Judge Dennis Davis‚ will look at the role of the tax system in promoting inclusive economic growth‚ employment creation‚ development and fiscal sustainability.
He said the government was working with business‚ labour and state-owned companies to address both short-term sectoral challenges and longer-term constraints in the economy.
These included measures to help manufacturers modernise production processes to meet international standards; tariff protection in response to unfair trade practices by importing firms and exporting countries; the introduction of designated products for local production as part of government's procurement policy; and the broadening access to finance and support for small businesses.
SA's trade deficit of 2.6% of gross domestic product in the first half of this year was a result of lower export volumes and higher import growth. The main contributors to the growth in import volumes were petroleum‚ chemicals‚ plastic‚ rubber‚ machinery and equipment‚ and appliances and transport equipment.
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