Tax revenue shortfall sees no adjustments to tax brackets, rebates
Finance Minister Enoch Godongwana has revealed that tax revenue for 2023/24, sitting at R7.73 trillion, is R56.1 billion lower than estimated.
Delivering the budget speech on Wednesday afternoon, Godongwana said this shortfall is attributed to the weak performance of the economy, resulting in a sharp deterioration in tax revenue collection.
The decline in corporate profits and revenue from taxes on mining are among the factors contributing to this shortfall.
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"Over the medium term, revenue projections are R45.6 billion higher than the 2023 MTBPS estimates, which increased personal income tax and additional medium-term revenue proposals,” Godongwana said in his budget speech.
"This budget contains tax measures that will raise R15 billion in 2024/25 to alleviate immediate fiscal pressure and support faster debt stabilisation.
"Revenue is mostly raised through personal income tax by not adjusting the tax brackets, rebates and medical tax credit for inflation."
