Weak econ­omy hits the tax­man

Swazi Observer - - BUSINESS -

JO­HAN­NES­BURG -Tax rev­enue in the first quar­ter of the cur­rent fi­nan­cial year was R13.1bil­lion lower than pre­dicted, con­firm­ing the sever­ity of the econ­omy’s stag­na­tion.

Per­sonal in­come tax came in at R104.4-bil­lion (tar­get R110-bil­lion), cor­po­rate in­come tax at R54­bil­lion (R57-bil­lion), div­i­dend tax at R7.2-bil­lion (R9.5-bil­lion), VAT col­lec­tion R63-bil­lion (R64.7-bil­lion) and cus­toms du­ties R8.9-bil­lion (R9.7-bil­lion).

Lower per­sonal in­come tax was mainly due to re­duced PAYE tax rev­enue (a R4.7-bil­lion short­fall) and per­sonal in­come tax as­sess­ment pay­ments (R500-mil­lion).

The short­fall in cor­po­rate in­come tax was due to pro­vi­sional tax pay­ments (R2.4-bil­lion be­low tar­get), and as­sess­ment pay­ments that were R400-mil­lion lower than ex­pected. Cus­toms rev­enues were lower mainly be­cause of shrink­ing con­tri­bu­tions by the cloth­ing and footwear, and ce­re­als, sec­tors.

VAT on im­ports was lower by R1.6bil­lion. mainly due to de­clin­ing con­tri­bu­tions by machin­ery, orig­i­nal equip­ment com­po­nents and pho­to­graphic in­stru­ments.

VAT re­funds were lower than had been es­ti­mated by R700-mil­lion as real gross fixed cap­i­tal for­ma­tion recorded a slower growth of 1 per cent quar­ter-on-quar­ter in the first quar­ter, from the 1.7 per cent quar­ter-on-quar­ter growth in the fourth quar­ter of 2016.

The tem­po­rary shut­downs by ve­hi­cle man­u­fac­tur­ers for plant up­grad­ing shrank ex­ports.

Spe­cific ex­cise du­ties were R900mil­lion lower, mainly due to lower col­lec­tions on cig­a­rettes and cig­a­rette to­bacco of R1.2-bil­lion.

Smaller com­pa­nies stopped op­er­at­ing in the pre­vi­ous year to move out of South Africa.

Taxes on prop­er­ties were higher by R300-mil­lion (R7.9 per cent).

- Busi­nessLIVE

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