THE National Treasury announced on Wednesday that the gross tax revenue for 2020/21 is expected to be R213.2 billion lower than projections in the 2020 Budget.
“However, due to a recovery in consumption and wages in recent months, and mining sector tax receipts, 2020/21 revenue collections are expected to be R99.6 billion higher than estimated in the 2020 MTBPS.
“As a result, government will not introduce measures to increase tax revenue in this Budget, and previously announced increases amounting to R40 billion over the next four years will be withdrawn.”
The main tax proposals include an above-inflation increase in personal income tax brackets and rebates, and an 8% increase in alcohol and tobacco excise duties.
The National Treasury said while a temporary increase in spending was necessary to combat the spread and impact of Covid-19, the medium-term policy stance is focused on repairing the public finances.
“The 2020 MTBPS noted
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