Tax revenue target down by R5bn

7 Nov 2012

Tax revenue is expected to be revised downwards by R5bn in the current financial year to about R900bn‚ but this still implied a nominal growth of 10.6% over the 2011/12 year‚ the Medium Term Budget Policy Statement (MTBPS) said.

Released on Thursday‚ the MTBPS said if economic conditions deteriorate or the mining sector output was disrupted over an extended period‚ further downward revision may be warranted.

In line with economic performance during the first half of the 2012/13 year‚ the estimated personal and corporate income tax revenue collections for the year have been adjusted downwards‚ and value added tax and customs duties collections have been revised upwards.

The MTBPS said mineral and petroleum royalties have also been revised downwards due to lower commodity prices and mining strikes.

It said revenues from import-related taxes such as customs duties and VAT on imports have preformed strongly.

Gross tax revenue collection was expected to remain subdued next year‚ but should improve towards the end of the three-year forecast period as economic conditions strengthen‚ the MTBPS said.