The Treasury projects a revenue shortfall of R212.2 billion for South Africa
The National Treasury announced Wednesday that gross tax revenue for 2020/21 is expected to be R213.2 billion lower than projections in the 2020 Budget.
“However, due to the recovery of consumption and wages in recent months, and the tax revenues of the mining sector, the revenue collection for 2020/21 is expected to be R99.6 billion higher than estimated in the 2020 MTBPS.
“As a result, the government will not introduce measures to increase tax revenue in this Budget, and previously announced increases worth 40 billion rand will be withdrawn over the next four years.”
The main tax proposals include an increase above inflation in the sections and reductions of personal income tax, and an 8% increase in excise taxes on alcohol and tobacco.
The National Treasury said that while a temporary increase in spending …