<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6004498137001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Goldman Sachs CEO Colin Coleman shares his views on fimin Mboweni’s 2019 budget speech.</p>


Goldman Sachs CEO Colin Coleman on fimin Mboweni’s #2019budgetspeech

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6004499574001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Eskom Chairperson Jabu Mabuza speaks to CNBC Africa on measures put in place by Finmin Tito Mboweni to bailout the power utility.</p>


Jabu Mabuza on Eskom’s rescue package


<p>Treasury sets out plans to render on to Caesar what belongs to Caesar. Read South Africa&#8217;s finance minister, Tito Mboweni&#8217;s budget speech in full:</p>



<p><a href="http://cnbc.africa/wp-content/uploads/2019/02/2019-BUDGET-SPEECH.pdf">Finance minister Tito Mboweni&#8217;s maiden budget</a></p>


IN FULL | #Budget2019: Tito Mboweni’s maiden speech


<p>Treasury sets out plans to render on to Caesar what belongs
to Caesar. </p>



<hr class="wp-block-separator"/>



<p>Revenue collection remains a bugbear for government due to weak economic growth and tax administration concerns, which were self-inflicted, South Africa’s Finance Minister Tito Mboweni told journalist in a Budget press conference.</p>



<p>The revised tax revenue estimate for 2018/19 is R15.4 billion lower than anticipated by the 2018 Medium Term Budget Policy Statement (MTBPS) estimate. Thus the projected revenue shortfall of R27.4 billion is now R42.8 billion compared with the 2018 Budget estimate. </p>



<p>This sombre news was revealed by Mboweni in his maiden Budget on Wednesday. To address this shortfall, tax changes designed to raise R15 billion in additional tax revenue in 2019/20 have been introduced.</p>



<p><strong>These among others include:</strong></p>



<ul><li>Increasing the tax-free threshold for personal income taxes from
R78 150 to R79 000. No changes will be made to personal income tax
brackets.&nbsp; </li><li>Increasing the fuel levy by 29c/litre, consisting of a 15c/litre
increase in the general fuel levy, a 5c/litre increase in the Road Accident
Fund (RAF) levy and the introduction of a carbon tax on fuel of 9c/litre.&nbsp; </li><li>Increasing excise duties on alcohol and tobacco products by between
7.4 per cent and 9 per cent. The targeted excise tax burden for wine, beer and
spirits is 11 per cent, 23 per cent and 36 per cent respectively.</li><li>No change in the monthly medical tax credit for medical scheme
contributions.</li><li>Increase in health promotion levy from 1 April from 2.1c to 2.21c
per gram in excess of 4 grams of sugar per 100ml. </li><li>Limiting the RAF levy diesel refund for primary production
industries to ensure that diesel users in these sectors equitably contribute
towards their RAF indemnity.</li><li>The implementation of carbon tax on 1 June 2019. </li><li>Government proposes to align the tax treatment on ad valorem
excise duty on motor vehicles Because of the way ad valorem excise duty is
calculated, vehicles produced locally are taxed at a higher rate than imported
vehicles. </li><li>Government intends to publish draft legislation for public comment
during 2019 on a gambling tax. </li><li>Urban development zone tax incentive to be reviewed. </li><li>South Africa reviewing its oil and gas tax regimes in 2019. </li><li>Taxing electronic cigarettes and tobacco heating products. </li><li>Definition of fuel levy goods for tax purposes to be reviewed may
include mineral ethanol, illuminating paraffin, aviation kerosene, liquefied
petroleum gas, compressed natural gas – as well as biofuels such as bioethanol
and biogas</li><li>Tax on “single-use” plastics including straws, caps, beverage cups
and lids, and containers to curb their use and encourage recycling will be
considered. </li></ul>



<p>READ MORE : IN FULL | <a href="http://cnbc.africa/news/2019/02/20/in-full-budget2019-tito-mbowenis-maiden-speech/" target="_blank" rel="noreferrer noopener" aria-label="#Budget2019: Tito Mboweni’s maiden speech (opens in a new tab)">#Budget2019: Tito Mboweni’s maiden speech</a></p>



<p><strong>Although few, government has also introduced a number of tax incentives. These include:</strong><br> <br></p>



<ul><li>From 1 March 2019, employers participating in the Employment tax
incentive will be able to claim the maximum value of R1 000 per month for
employees earning up to R4 500 monthly, up from R4 000 previously. The
incentive value will taper to zero at the maximum monthly income of R6
500.&nbsp; </li><li>From 1 April 2019, the list of items for zero-rating for VAT will
include white bread flour, cake flour and sanitary pads.&nbsp; </li><li>Energy-efficiency savings tax incentive to be extended to 31
December 2022. During 2019, government will review the design and
administration of the incentive to improve its ease of use, effectiveness and
economic impact.&nbsp; </li></ul>



<p><strong>Treasury has also recognised that to render on to Caesar, what belongs to Caesar it needs to restore the efficiency of SARS. To do this it plans to:</strong></p>



<ul><li>Appoint a new SARS Commissioner in the coming weeks.</li><li>It has established a new Illicit Economy Unit to fight trade in the illicit economy.  </li><li>Officially launch the Large business Unit in early April 2019.  </li><li>Strengthen SARS IT team &amp; systems. </li><li>Establish information sharing agreements with allies to help fight cross-border tax evasion schemes.</li><li>Set up an inspector-general for tax administration.</li><li>Through internal processes, SARS will implement recommendations concerning inappropriate actions, fruitless and wasteful expenditure, unfair labour practices and maladministration.  </li><li>SARS will review contracts that breached public procurement regulations and will act to recover funds spent.  </li><li>SARS is normalising refund payments. </li></ul>



<p></p>



<p></p>


#Budget2019 | Tax changes highlighted: little tax relief

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6004476345001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>One of the great forgotten fronts of the budget story every year is small business. Every year the politicians say small businesses are the future when it comes to creating jobs, and they&#8217;re going to make life easier for them. So what do small businesses want? CNBC Africa&#8217;s Chris Bishop visited a small manufacturing company in Johannesburg that makes uniforms for hotels and game lodges across Southern Africa to speak to Issac Makunyane, CEO of Morento about their budget expectations.</p>


This is what we want from Minister Mboweni’s budget – Morento CEO

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5997415393001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>The board of the Public Investment Corporation have requested that Finance Minister Tito Mboweni dissolve it. Mondli Gungubele, Deputy Minister of finance and Chairperson of the Public Investment Corporation joins CNBC Africa for more.</p>


PIC Chair Gungubele explains why the board asked to be dissolved

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5982519302001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>The ways to transform economic goals into action was the topic of conversation at the South African Reserve Bank this morning. Finance Minister Tito Mboweni was joined by professor Ricardo Hausman, Director of the Centre for International Development and Professor of Economics at Harvard University.</p>


Ricardo Hausman on how to grow SA’s economy

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5858816391001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>South Africa’s minister of finance Tito Mboweni spoke to CNBC Africa about the importance of the Africa Investment Forum as driver for channelling infrastructure investment on the continent as well as the need to change the funding models to encourage inclusive growth.</p>


SA finmin Mboweni on infrastructure investment, achieving inclusive growth in Africa

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s new Finance Minister Tito Mboweni said on Thursday that struggling state-run South African Airways (SAA) should be closed down, adding that decisions over the future of the state carrier were not under his remit.</p>
<p>SAA, which has not generated a profit since 2011, survives on state guarantees and is regularly cited by credit ratings agencies as a drain on the government purse.</p>
<p>“It’s loss-making, we are unlikely to sort out the situation, so my view would be close it down,” Mboweni told an investor conference in New York televised live on South African public broadcaster SABC.</p>
<p>“Why I say close it down is because it’s unlikely that you are going to find any private sector equity partner who will come join this asset,” Mboweni added.</p>
<p>In August, President Cyril Ramaphosa transferred oversight of SAA to the public enterprises ministry which is led by Pravin Gordhan from the finance ministry. Ramaphosa has pledged to revive struggling state firms, including SAA.</p>
<p>SAA CEO Vuyani Jarana has said he is mapping out a punishing austerity plan to turn the flag carrier around. He has said layoffs and other cuts were unavoidable.</p>
<p>In a dramatic fall from grace over the past decade, SAA has lost its place as Africa’s biggest airline and a symbol of patriotic pride to become a source of frustration for taxpayers who have forked out more than 30 billion rand ($2 billion) since 2012 to keep it in the air.</p>
<p>($1 = 14.4700 rand)</p>
<p>Reporting by Olivia Kumwenda-Mtambo; Writing by Joe Brock; Editing by James Macharia</p>


Should South African Airways (SAA) be closed down? Why Mboweni thinks it should…

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5856248690001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>A big march is scheduled tomorrow against the seeming continuation of the e-tolls which are largely contested by Outa and Cosatu. CNBC Africa’s Karabo Letlhatlha spoke to Dumisani Dakile, Gauteng Secretary, Cosatu.</p>


Cosatu to lead march against e-tolls

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5853288927001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>SA finance minister Tito Mboweni highlighted how agricultural sector has potential to create much needed jobs in his maiden medium term budget policy statement. Agricultural Economist Hamlet Hlomendlini joins CNBC Africa for more.</p>


#MTBS 2018: Finmin Mboweni on the SA’s agricultural potential

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5853284127001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>SA finance minister Tito Mboweni delivered his much anticipated maiden medium term budget policy statement. He announced the easing of visa requirements to boost the tourism sector. Unathi Henama, Tourism TUT Lecturer joins CNBC Africa for more insight.</p>


#MTBS 2018: Finmin Mboweni announces easing of visa requirements to boost tourism

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5853264385001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Finance Minister, Tito Mboweni, has announced a huge relief a lot of civil organisations have been seeking from sanitary pads. The MTBPS revealed that sanitary pads will now be zero vat rated and also will be made freely available to all girl learners at schools. Sibabalwe Gcilitshana, researchers at  Equal Education joins CNBC Africa for more.</p>


#MTBS 2018: Finmin Mboweni scraps VAT on sanitary pads

<p>Quoting Nelson Mandela and Charles Dickens, new Finance Minister Tito Mboweni’s climbed into the driving seat of South African economic policy, with aplomb, with his maiden mini-budget speech. His mere avuncular presence could revive comforting memories of better times – say, in 2005, when Mboweni was Reserve Bank Governor and the economy was cooking with 5% growth – times that the flagging economy needs to bring back badly right now.</p>
<p>“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity,” says Mboweni with an apt quote from Charles Dickens in his book A Tale of Two Cities.</p>
<p>In his years of semi-retirement, spent fishing, farming and investing, Mboweni has been full of forthright opinions about what the once thriving South African economy needs to do to recover. Now he has a golden opportunity to do something about it in a tough job where he will have his work cut out for him in this quest for elusive growth.</p>
<p>With his trademark humour and  forthright opinion, the mere expectation of the  speech saw  the rand running to a three-week high – yet it was peppered with worrying news. The growth figures tripped easily off the tongue, but is likely to be a concern: GDP growth revised downwards to 0.7 from 1.5%, in 2018, following a recession in the first half of the year, at a time when the world economy is growing at 3.7%. Growth is predicted to recover to a mere 2.3% by 2021.</p>
<p>Debt is another worry. Mboweni said gross debt is expected to stabilise at 59.6% of GDP, but only by 2023/24. Analysts believe this could not only mean South Africa spends millions more every year on repayments but also the undermining of the reputation of the economy in the eyes of the ratings agencies. On top of this tax revenue has been revised down by R27.4 billion in 2018/19, R24.7 billion in 2019/20 and R33 billion in 2020/21 relative to the 2018 Budget. This mainly reflects higher-than-expected VAT refunds.</p>
<p>Yet another worry is in the skies over Africa. Mboweni said there will be reform and yet more cash to bail out the ailing South African Airways, despite the view among analysts that this is good money being thrown after bad.</p>
<p>One of the biggest cheers during the speech was for the VAT zero-rating for sanitary pads, along with bread and cake flour. Long overdue, some said.</p>
<p>In this vein, on the positive side, with an election just around the corner, there was a pledge of trillions for certainties for the people in the shape of water electricity services, and social grants. Less clear is how Mboweni plans to kick start growth.</p>
<p>Mboweni rounded off with a quote from his mentor: Mandela.</p>
<p>“Difficulties break some, but make others. No axe is sharp enough to cut the soul of a sinner who keeps on trying, one armed with the hope that he will rise even in the end.”</p>
<p>If that is not a quote made for Mboweni and his new, difficult, job- I don’t know what is. But please, spare us more Dickensian Hard Times.</p>


MTBPS2018: Tito Mboweni talks tough in hard times

<p>By Monique Vanek</p>
<p>In the forward to Medium Term Budget Policy Statement (MTBPS) it warns that South Africa finds itself at a crossroads and highlights the difficult economic and fiscal choices confronting government over the next several years. These are the key takeaways:</p>
<p><strong>Economic</strong></p>
<p>• The consolidated budget deficit narrows from 4.2% in 2019/20 to 4% in 2021/22.<br />
• Gross debt is expected to stabilise at 59.6% of GDP in 2023/24.<br />
• GDP growth revised downwards to 0.7 from 1.5% in 2018 following a recession in the first half of the year.<br />
• GDP growth is expected to recover gradually to 2.3% by 2021<br />
• Global economy expected to continue growing at 3.7%<br />
• Tax revenue has been revised down by R27.4 billion in 2018/19, R24.7 billion in 2019/20 and R33 billion in 2020/21 relative to the 2018 Budget. This mainly reflects higher-than-expected VAT refunds.<br />
• In 2017/18, for the first time since the 2008 global financial crisis, tax revenue growth did not exceed GDP growth.<br />
• The cost of servicing government debt is expected to exceed 2018 Budget estimates by R1 billion in 2018/19, R4.9 billion in 2019/20 and R7.9 billion in 2020/21. This reflects a larger main budget deficit, currency depreciation and higher interest rates. An estimated 15.1 per cent of main budget revenue will be used to service debt in 2021/22 compared with 13.9 per cent in 2018/19.<br />
• Main budget revenue is projected to increase from 25.7% of GDP in 2018/19 to 26% of GDP in 2021/22. Main budget expenditure is estimated to remain stable at 30.2% of GDP over the medium term</p>
<p><strong>Where the money will go</strong></p>
<p>• The Medium-term expenditure framework commits public resources of R5.9trn over the next three years. Of this amount:<br />
&#8211; R3.3trn or 56.2% t will be allocated to education, health, the provision of water and electricity services, and social grants.<br />
&#8211;<br />
• Government is proposing reprioritisation of R32.4bn over the next three years. Of this amount:<br />
&#8211; R15.9bn goes towards faster-spending infrastructure programmes.<br />
&#8211; R16.5bn will be allocated to various programmes, including recapitalising the South African Revenue Service (SARS), a minimum wage for community health workers, critical posts and goods and services in health, and streamlining the management of the justice system.<br />
&#8211; In addition, changes to grant structures amounting to R14.7 billion will promote upgrading of informal settlements in partnership with communities.<br />
&#8211; Housing subsidies amounting to R1 billion will be centralised to better support middle- and lower-income home buyers.<br />
• In the current year, R1.7 billion is added to infrastructure spending (including funding for fast-spending school building programmes)<br />
• R3.4 billion is allocated to drought relief, mostly to upgrade water infrastructure aside funding for this purpose.<br />
• R3.4 billion is allocated in 2018/19 to provide water, improve infrastructure and offset the economic costs of drought. Funding is also provided for the South African Isotope Facility at iThemba Labs and, following approval through the Budget Facility for Infrastructure, for the MyCiti Phase 2A bus programme in the City of Cape Town.<br />
• R800 million added to the school infrastructure backlogs grant to complete approved projects.<br />
• R3.4 billion is allocated to the education infrastructure grant. Funds are also allocated to the same grant to continue repairing infrastructure damaged by storms and floods in KwaZulu-Natal in 2017.<br />
• The Department of Women has developed a framework to provide free sanitary towels to learners from low-income households. The project rollout is funded through the provincial equitable share.<br />
• Local government equitable share, which finances free basic services to low-income households and some administrative costs for municipalities, is expected to grow by9.4 per cent per year to R82.2 billion by 2021/22.<br />
• Over the medium term, public transport expenditure is expected to increase to R101.1 billion as integrated public transport networks are built and operated in 13 cities.</p>
<p><strong>State owned entities</strong></p>
<p>• South African Airways will receive R5 billion through a special appropriation bill to settle debt redeeming between now and March 2019. This will help to prevent a call on the airline’s outstanding debt of R16.4 billion, which is guaranteed<br />
• R1.2 billion is allocated to South African Express Airways.<br />
• The South African Post Office receives R2.9 billion to reduce debt levels</p>
<p><strong>National Health Insurance</strong></p>
<p>• R166 million added to the national health insurance (NHI) indirect grant (health facility revitalisation) component to procure medical equipment and to design a new academic hospital in Limpopo.<br />
• R546 million reprioritised within the NHI indirect grant to address the critical shortage of medical professionals in the health sector, and to procure beds and linen for health facilities.</p>
<p><strong>Tax changes</strong></p>
<p>• In 2019 annual adjustments to personal income tax brackets, levies and excise duties in line with inflation are expected.<br />
• White bread flour, cake flour and sanitary pads will be zero-rated from 1 April 2019.</p>
<p><strong>Students</strong></p>
<p>• The Department of Higher Education and Training is developing a funding framework to clarify students’ food, book, transport and accommodation allowances, and the obligations required of bursary students during and after their studies.<br />
• Funds recommended through the Budget Facility for Infrastructure, and from educational institutions and the department, will support the Student Housing Infrastructure Programme. Over the next 10 years, it will provide 300 000 new beds at universities, and technical and vocational colleges.<br />
• Over the medium term, an estimated R61.5 billion in revenue from the skills development levy will continue to expand participation in learnerships, internships and skills development programmes.</p>
<p><strong>Land reform</strong></p>
<p>• Government is working with the Land Bank to accelerate land reform and maintain the productive use of transferred land.<br />
• Under the Land Reform Programme, government will provide 30-year leases, enabling the Land Bank to extend loans to emerging farmers.<br />
• The Land Bank will use a combination of loans and grants to increase production through the Black Producers Commercialisation Programme. Funding from the comprehensive agricultural support programme grant will be reprioritised to produce foot-and-mouth disease vaccines.</p>


SA’s #MTBPS2018: Key takeaways

<p>By Monique Vanek</p>
<p>The public servants wage bill remains the single largest component of expenditure in the Medium Term Policy Framework, but with elections approaching in 2019 the Medium Term Budget Policy Statement (MTBPS) provided no concrete plans to address this, only stating that government is working on an approach to manage these pressures over the medium term.</p>
<p>According to the MTBPS, public servants compensation, accounts for 34.7 per cent of consolidated expenditure, and forms the major driver of spending pressures. The MTBPS highlights that “it is one of the fastest-growing items in the budget, increasing at an average of 11.2 per cent a year”.</p>
<p>It adds that “the 2018 public-service wage agreement (see box) exceeded budgeted baselines by about R30.2 billion through 2020/21. National and provincial departments are expected to absorb these costs within their R1.8 trillion compensation baselines over the same period.”</p>
<p>The MTBPS also states that “over the long term, government and trade unions need to agree on an approach that ensures fair remuneration and a sustainable wage bill”.<br />
An annexure to the MTBPS deflects that issue of the amount of public servants to earnings growth, stating that “earnings growth, rather than headcount, has been the major driver of the public-service wage bill over the past decade”.</p>
<p>The annexure says an analysis of compensation spending since 2006/07 reveals the following trends:</p>
<p>• The main driver of increased spending is large increases in wages and other employee benefits, rather than increases in employment.<br />
• The increase in average real wages is partly explained by above-inflation agreements reached between government and unions, but wage progression and promotion policies account for a considerable proportion of the rise.<br />
• Wages have increased most rapidly in the lowest ranks of the public service, compressing wage distribution.<br />
• Overall, the number of public servants has increased since 2006/07. Employment peaked in 2012/13, after which personnel numbers have fallen by just over 1 per cent. This decline is insufficient to contain real spending growth due to continued growth in real wages.<br />
• There is a significant amount of turnover in the public service, with as many as 6 per cent of personnel leaving in a given year.</p>


#MTBPS2018: Public servants’ wages balloon, but headcount is not to blame

<p>By Monique Vanek</p>
<p>The Medium Term Budget Policy Statement (MTBPS) has confirmed that the South African Revenue Service (SARS) under its former Commissioner Tom Moyane delayed paying tax refunds, which is now hurting revenue.</p>
<p>According to its current Commissioner Mark Kingon, whether this was intentional or not is up for debate but he believes it was not intentional.</p>
<p>Kingon in a closed media briefing said SARS is currently evaluating why refund payments slowed.</p>
<p>The MTBPS points a negative picture of what happened to tax revenues under Moyane’s tenure and the aftermath: “A backlog of VAT refunds at SARS, and an underestimation of refunds due, has led to an overly optimistic view of revenue growth. Net VAT collections account for about R20 billion of the in-year revenue shortfall. Two factors account for the revision in net VAT. The VAT refund estimate has been revised upwards by R9 billion, and about R11 billion will be paid out to clear the backlog in the VAT credit book (see table).</p>
<p>“The remaining R7.4 billion of the shortfall in the current year mostly reflects slower corporate income tax collections due to weak growth in wholesale and retail trade, manufacturing and transport. Personal income tax continues to be negatively affected by job losses, moderate wage settlements, lower bonus payments and a slower expansion of publicsector employment”.</p>
<p>The MTBPS also states: “In 2017/18, for the first time since the 2008 global financial crisis, tax revenue growth did not exceed GDP growth. Revenue shortfalls have widened over the past four years, with under-collections rising from R7.4 billion in 2014/15 to R49 billion in 2017/18. These shortfalls would have been larger were it not for increases in personal income, dividend withholding, capital gains and other taxes. Revenue collections in 2017/18 were R0.8 billion lower than estimated in the 2018 Budget. Revenue collection for the first six months of 2018/19 grew by 10.7 per cent compared with the same period last year. However, the technical recession experienced in the first half of the year has begun to feed through to revenue collection, which has slowed. Weaker economic growth, alongside a once-off payment of overdue VAT refunds, will result in an in-year revenue shortfall now estimated at R27.4 billion, relative to the 2018 Budget estimate.”</p>


Tito Mboweni

Goldman Sachs CEO Colin Coleman on fimin Mboweni’s #2019budgetspeech

Jabu Mabuza on Eskom’s rescue package

IN FULL | #Budget2019: Tito Mboweni’s maiden speech

#Budget2019 | Tax changes highlighted: little tax relief

This is what we want from Minister Mboweni’s budget – Morento CEO

PIC Chair Gungubele explains why the board asked to be dissolved

Ricardo Hausman on how to grow SA’s economy

SA finmin Mboweni on infrastructure investment, achieving inclusive growth in Africa

Should South African Airways (SAA) be closed down? Why Mboweni thinks it should…

Cosatu to lead march against e-tolls

#MTBS 2018: Finmin Mboweni on the SA’s agricultural potential

#MTBS 2018: Finmin Mboweni announces easing of visa requirements to boost tourism

#MTBS 2018: Finmin Mboweni scraps VAT on sanitary pads

MTBPS2018: Tito Mboweni talks tough in hard times

SA’s #MTBPS2018: Key takeaways

#MTBPS2018: Public servants’ wages balloon, but headcount is not to blame

#MTBPS2018: SARS withheld tax refunds under former Commissioner Moyane, these are the consequences…

News Tips

Advertise With Us

Tito Mboweni

Goldman Sachs CEO Colin Coleman on fimin Mboweni’s #2019budgetspeech

Jabu Mabuza on Eskom’s rescue package

IN FULL | #Budget2019: Tito Mboweni’s maiden speech

#Budget2019 | Tax changes highlighted: little tax relief

This is what we want from Minister Mboweni’s budget – Morento CEO

PIC Chair Gungubele explains why the board asked to be dissolved

Ricardo Hausman on how to grow SA’s economy

SA finmin Mboweni on infrastructure investment, achieving inclusive growth in Africa

Should South African Airways (SAA) be closed down? Why Mboweni thinks it should…

Cosatu to lead march against e-tolls

#MTBS 2018: Finmin Mboweni on the SA’s agricultural potential

#MTBS 2018: Finmin Mboweni announces easing of visa requirements to boost tourism

#MTBS 2018: Finmin Mboweni scraps VAT on sanitary pads

MTBPS2018: Tito Mboweni talks tough in hard times

SA’s #MTBPS2018: Key takeaways

#MTBPS2018: Public servants’ wages balloon, but headcount is not to blame

#MTBPS2018: SARS withheld tax refunds under former Commissioner Moyane, these are the consequences…

News Tips

Advertise With Us

Newsletters