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South Africa tax revenue recorded at $11.5b below budget, shows shortfall of 5.4%

South Africa tax revenue recorded at $11.5b below budget, shows shortfall of 5.4%

SOUTH AFRICA: Sout Africa National Assembly Budget Office (NABO) has indicated that the Government’s tax revenue in 2014 will be up to KRW12.7 trillion (USD11.5bn) below budget – a shortfall of 5.4 percent – largely due to lower corporate tax collections.

With South africa economic growth remaining slower than expected, pressure has remained on corporate earnings. During the third quarter of this year, the earnings of listed companies began to fall, after previously showing slow growth.

In addition, the NABO said that falls in the KRW exchange rate and falling commodity prices have caused lower collections of value-added tax and customs duty.

Revenue collections have been short on targets for three consecutive years, after gaps of KRW8.5 trillion in 2013 and KRW2.8 trillion in 2012. A further shortfall is also expected by the NABO next year, of about 3.4 percent.