This article first appeared in Business Day, 10 February
2014
Economic slowdown, strikes will take toll on revenue
collection
The reduced tax revenue target of R895bn for the fiscal
year ending March 30 will not be achieved given the expected drop
in tax revenue, tax commentators say.
Finance Minister Pravin Gordhan, who adjusted the tax revenue
target downward by R3bn in the medium-term budget policy statement
in October, will deliver his fifth budget speech on February 26, at
a time when South Africans are battling with an interest rate hike,
price increases on all levels and a weakening rand.
The slowdown in the economy and consumer spending towards the
second and third quarters of last year, combined with the wave of
mostly illegal strikes in the mining sector which cost the country
R11bn in lost revenue will negatively affect total projected
revenue collection for the fiscal year ending March 30.
