Hits & Misses

Economy shrinks in quarter but VAT revenue forecast grows

DISAPPOINTING growth in the first quarter has not dampened expectations of higher VAT revenue at SARS, despite slower VAT collection in April, when the one-percentagepoint hike kicked in.

VAT collection improved 6.2% to R21.4-billion in April from a year earlier. The forecast is for R348.1-billion for the year.

A SPECIAL oversight committee chaired by Deputy Finance Minister Mondli Gungubele had been established to address SAA’s liquidity challenges and to set in motion the process of finding a strategic equity partner for the troubled airline, SAA chairman Johannes Magwaza told parliament’s finance committee.

SUN International, now carrying a lighter debt load after a large rights issue, reckons dividends could be resumed within two years. This week, it completed its R1.6-billion rights issue, which saw a hefty oversubscription from shareholders.

SOUTH Africa’s economy contracted the most in nine years in the first quarter as mining and factory output fell. GDP shrank an annualised 2.2% compared with the prior three months,

Stats SA said. However, when measured against the first quarter of last year, the economy expanded 0.8%.

GLOBAL auditor KPMG said it would axe up to 400 employees in South Africa in its latest shake-up following a corruption scandal that saw it lose several major clients. It said it planned to have just four business hubs in South Africa and would appoint some executives from KPMG International to KPMG South Africa’s board.

CASH-strapped power utility Eskom is heading for a showdown with unions in the second round of wage talks as it sticks to its stance of no pay increase. It did not give in on any demands, including on the softer issues of maternity leave and housing.