Consumption and two pot withdrawal of revenue collections

The tax collection came below the October forecasts for the year 2024/25. The South African Revenue Service (SARS) was able to collect R1.84 trillion, which was more than R19.3 billion in February last year.

Due to low interest rates due to low interest rates due to two bot pensions withdrawal and inflation, SARS was able to reduce the R22 billion deficit in October at the back of the larger tax collection than expected from the growth of the consumption.

Read: The tax collection is above, but not enough

SARS Commissioner Edward Keester, during a media conference with the National Treasury in Cape Town ahead of the scheduled budget speech (Then it stopped.

The withdrawal issued additional R43 billion in the economy. Consumer costs have also increased due to low interest rates from low inflation.

Low fuel tax collection

Geeswater said that the fuel tax was imposed on the fuel tax, which had not been enhanced in the February Budget last year, and the false assumptions of the development of imports and the revenue collection.

. Fuel taxes for the fourth consecutive time this year).

“The only thing that can affect the total tax we collect. However, consumption has declined by about 11%,” said Geeswater.

In the absence of a load, he burned the low diesel to keep the lights. In emergency, the roof of the roof from diesel was able to change the industry.

Read: Wat that broke the budget

According to Keeswater, fuel consumption has fallen 1.6 million liters, which translates from the fuel tax collection to R15 billion from Fiskus.

In addition, he said The growth of imports was estimated at about 3.8% per year 2024/25. Instead, there is a summary of 1.3%.

“This big swing has had a direct impact on the amount of customs duty on the imports collected by SARS and the amount of VAT that can be charged on imports.”

Line

The income from the individual income tax is estimated at R738.7 billion, but the SARS is expected to collect about R4.4 billion (R734.2 billion).

Things were good in the 2024 to 10 months, which grew to 13%of personal income tax collections. However, it was adjusted downwards in accordance with a weak view of employees compensation.

Wat collections are expected to be R459.9 billion per year, which is slightly lower than the estimated R476.7 billion.

IOn the contrary, the corporate income tax collection is expected to surpass 2024 budget estimates. The revised estimate for the corporate income tax is R314.6 billion, which is more R11.9 billion higher than the original estimate.

Tax plans

The most controversial tax proposal is to raise VAT by two percent of the points – 15% to 17%.

But on Wednesday, the budget speech led to the cancellation of the Budget speech, after the Finance Minister Enok Kotongwana and the National Treasury failed to buy the cabinet. The new date for the budget 2025 is set on March 12.

In unopened budget documents, the tax proposal and the unprecedented budget speech poll accumulates in the additional R58 billion tax collection, the biggest contribution from the VAT rate increase.

Smokers and drinkers have faced an increase in inflation more than inflation to alcohol and tobacco products. However, the increase in the redefined budget to be announced by Kodongwana in March may have to be adjusted.

Read: S.A. Cannekrover’s asks Gotongwana to scrap ‘Job-Killing’ sugar line

The Health Development Tax or ‘Sugar Tax’ does not increase in the draft budget. It should be seen that this is still in March.

Some relief… for some

The government felt the reactionary impact of the two percent-point WAT increase program and proposed several steps to “mattress”, especially the impact on poor homes.

To achieve this, it proposed that high -income persons should only get some relief from the effect of bracket creep.

According to the draft budget documents, only two personal income tax brackets were set up below to get full inflation relief. However, this move may also change a redesign budget.

The Treasury proposed an increase in inflation for social subsidies, which is expected to cost taxpayers in 2025 to R6.2 billion and more than R23.3 billion more than medium term.

It proposed the R35 billion budget to keep the Social Relief (SRT) subsidy for another year, but within the middle of the R75 billion temporary allocation.

A Treasury Officer noted that the quota is temporary in the sense that a decision has not yet been made regarding the future of the SRT”.

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Kotongwana said that the recent Supreme Court’s decision, which can be doubled in the value of this subsidy, will be made three times more than the number of beneficiaries.

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