southafricalogoBusinessLive reports that revenue collections have fallen R23bn short of what was projected in the February budget, with R12.5bn of this shortfall coming from personal income tax and R8bn from VAT.  

The latest tax revenue forecast of R1.3-trillion for 2016-17 compared with the budget’s forecast of R1.32-trillion was due to "significant reductions in major tax bases including wages, household consumption and imports", the medium-term budget policy statement said.  The economic contraction in the first quarter of 2016 had led to lower personal income tax receipts.  "Growth in the wage bill, the tax base for personal income tax, has been revised down by more than one percentage point on average over the medium term," the statement added.  Treasury expects some recovery in the second half of the year.


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