JOHANNESBURG – Tax collection will be lower this fiscal year.
That’s the warning from SARS as the revenue collector grapples with the impact of load-shedding.
SARS commissioner Edward Kieswetter says the constant power cuts, the rising cost of living and the shrinking tax base are partly to blame.
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He says the increased likelihood that people and businesses will try to avoid paying taxes will mean that government’s kitty will fall a few millions short.
He was speaking at a PSG Konsult webinar.
Consumers have also had lower disposable income due to higher interest rates and have been spending less, indicating that VAT collection is also set to decrease.
