KnysnaSouth Africa’s tax base is shrinking – Knysna https://showme.co.za/knysna Knysna, South Africa for all your local and tourism information; from accommodation to events, entertainment, attractions and news - ShowMe Knysna | T Feed Wed, 06 Mar 2024 08:20:00 +0000 hourly 1 https://showme.co.za/knysna/?p=58411 South Africa’s tax base is shrinking https://showme.co.za/knysna/news/business-news/south-africas-tax-base-is-shrinking/ Thu, 08 Oct 2020 06:18:15 +0000 New data from SARS shows that South Africa faces an uphill battle when it comes to revenue collection – even before the impact...]]> New data from SARS shows that South Africa faces an uphill battle when it comes to revenue collection – even before the impact of the coronavirus pandemic is factored in.

In a parliamentary presentation on Tuesday (6 October), SARS commissioner Edward Kieswetter said that a number of factors have begun to manifest in measurably weaker economic activities during the 2019/20 financial year, especially in sectors such as manufacturing and financial services.

The 2019/20 financial year ended 31 March 2020 – before the Covid-19 pandemic and lockdown had fully taken root in the economy.

The factors identified by the SARS head include:

  • Poor economic conditions;
  • High public debt;
  • Underperforming SOEs;
  • Unreliable electricity supply; and
  • Lower business confidence.

By Q4 2019, a contraction in real GDP of 0.4%, 2.9% and 1% was recorded respectively in the primary, secondary and tertiary sectors. This worsened to -11.8%, -7.5% and 1.3% respectively in Q1 2020.

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