South Africa: Budget 2018 - R48 Billion Revenue Shortfall Piles Pressure On Beleaguered Tax Boss Tom Moyane

analysis

If successful tax administration, productiveness and expertise at SARS is measured by the revenue it collects, we are in trouble. For the second year in a row, the service headed by Commissioner Tom Moyane did not meet its target.

The tax revenue shortfall is an eye-watering R48.2-billion this year, Minister of Finance Malusi Gigaba said on Wednesday afternoon while delivering his maiden Budget speech in Parliament. Worse news is that the deficit shows a year-on-year increase. Last year the revenue deficit was R30.7-billion, then minister of finance Pravin Gordhan announced during the February 2017 Budget speech.

Moyane has since then attempted to "correct misperceptions", saying a slow economy is to blame. In an exclusive interview with City Press right after the 2017 mid-term budget speech, Gigaba acknowledged the downturn in the economy as a reason for the deficit but highlighted ineffective management and administrative problems too.

Gigaba gave Moyane no wiggle room.

"Because of the underperforming economy, you have seen a large gap developing in tax compliance," he said. "But we would be disingenuous not to admit that there are tax administration challenges at SARS. We are discussing this, and a lack of skills...

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