Advertise with fastmoving.co.za
 
 

South Africans to pay more tax next year
South Africans to pay more tax next year

South Africans to pay more tax next year

ECONOMIC NEWS

Fin24 - Oct 28th 2016, 10:05

Cape Town – South Africans will pay more tax next year.  

In total R13bn in additional taxes were announced in Parliament for the next tax year (2017/18), apart from the R15bn increase already announced in the February budget.

That will bring the total tax hike next year to R28bn. The tax measures and specific raises will only be announced in the February 2017 budget.

Revenue collections for the first half of 2016/17 have fallen sharply below expectations, mostly due to shortfalls in personal income tax. Value-added tax (VAT) performance has also been sluggish, largely due to weak demand for domestic and imported goods.

Other major tax categories have also shown signs of weakening, but corporate income tax performed better than expected.

Additional tax revenue measures to raise R15bn in 2018/19 have also been announced, with particulars to come at a later stage.

According to the medium-term budget document, gross tax revenue collections for 2015/16 amounted to R1.07trn, R0.3bn higher than the 2016 budget estimate. VAT recorded an over-collection of R3.1bn in 2015/16, mainly as a result of lower-than-anticipated VAT refunds in the latter part of the year.

Corporate income tax recorded an over-collection of R2.2bn. Personal income tax was the worst performing category, with an under-collection of R3.9bn, led by lower-than-expected pay-as-you-earn (PAYE) receipts.

Finance Minster Pravin Gordhan would not answer a question at the press conference before his speech in the General Assembly on how taking R28bn extra in taxes from the South African economy next year would impact on growth prospects and private sector investment – two important aims highlighted in the mini-budget as necessary to enhance the credibility of the country’s fiscal framework, as well as satisfy the rating agencies and avoid a downgrade to junk status.

Gordhan said realities around tax income, debt and expenditure needs should be taken into account: “There will be trade-offs. Resources are always limited. But if we do what is best in the interest of the country and all its people, not just a few, it will also satisfy the rating agencies.” Fin24.com 

Read more about: tax | economy

Related News

Manufacturing growth remains tepid in February
12/04/2019 - 09:24
Manufacturing production grew 0.6% in February after the sector saw subdued growth of 0.3% in January. This was slightly above the Bloomberg consensus of 0.5%.

Retailers feel the heat as e-commerce siphons off sales
11/04/2019 - 09:47
The start of 2019 has been bleak for most SA retailers, raising questions about the future of the sector.

SA makes its mark in fisheries economy
10/04/2019 - 11:11
South Africa is no longer a spectator country in the business of the ocean and fisheries economy, says Minister of Agriculture Forestry and Fisheries Senzeni Zokwana.

Exports to Brazil take off over South American trade deal
10/04/2019 - 11:03
The ratification of trade agreements between the Southern African Customs Union (Sacu) and the Southern Common Market (Mercosur), a South American trade bloc, has been a key driver of the increase in exports to Brazil.

SA is experiencing net equity outflows
09/04/2019 - 10:05
The Institute of International Finance (IIF) said that its daily tracker showed South Africa experienced net outflows of non-resident portfolio equity in the first quarter while debt flows recovered only modestly.