More than R200 billion is being lost to the fiscus due to inefficiencies in Eskom’s power supply and logistical challenges at Transnet. These are the figures from the Commissioner of the South African Revenue Services (SARS), Edward Kieswetter.
The Commissioner says that were it not for SARS’s compliance efforts, the revenue shortfall would have been between R20 billion and R25 billion higher.
In last week’s Medium Term Budget Policy Statement, the National Treasury reported a R57 billion shortfall in expected revenue mainly due to reduced mining sector profitability and higher VAT refund payments.
“Our estimates and estimates of various economists are that combined between Eskom and Transnet, the revenue loss, not the economic impact, just the tax revenue loss is in excess of R200 billion. So it’s not insignificant and therefore more than ever before, we need a focused effort to reconceptualise, to fix. It’s no longer an Eskom problem or a Transnet problem, this is an energy problem and a logistics challenge. What is really good news is that the government has opened up and deregulated the sector so that private funds and expertise in private investment can be crowded in. Our view is that Eskom should stabilise in the next 12 to 24 months,” explains Kieswetter.
Provisional corporate tax collection fell by 55% this year compared to the same period last year. SARS also says although the rate of tax revenue collection has grown, it has been undercut by growth in refunds paid out to taxpayers.
Video: SARS endures lower revenue shortfall: Edward Kieswetter
Provisional corporate tax collection fell by 55% this year compared to the same period last year. SARS also says although the rate of tax revenue collection has grown, it has been undercut by growth in refunds paid out to taxpayers.
