ARTICLE · 05 NOVEMBER 2019

Medium Term Budget Policy Statement 2020: SARS Performance And Government Spending

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The Medium-Term Budget Policy Statement is taking place on 30 October 2019, and taxpayers anticipate significant shortfalls in tax collections

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Patricia Williams

The Medium-Term Budget Policy Statement is taking place on 30 October 2019, and taxpayers anticipate significant shortfalls in tax collections and associated downward revision of the tax revenue collection target for 2020. 'Within the context of actual economic performance over the last few years, we suggest that the tax collection target is unrealistic and damaging to the economy and to SARS, and that SARS' current performance is actually satisfactory,' says Patricia Williams, tax partner, Bowmans.

SARS presented to the Standing Committee of Finance in relation to its 2018/19 performance, on 9 October 2019. SARS collected a net amount of ZAR 1 287.7 billion in 2018/19, reflecting a ZAR14.5 billion (1.1%) deficit compared to the 2018/19 target (revised estimate), or a ZAR57.3 billion (4.3%) deficit compared to the 2018/19 Budget target (original estimate).

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