ANALYSIS | Bad news for Godongwana: The mining revenue boom is over | Business

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The revenue tide is now turning for South Africa, warns Sisamkele Kobus.

Outside of the mining industry, Finance Minister Enoch Godongwana has been the main beneficiary of the commodity cycle, as it translated into significantly higher tax collections.

However, by the middle of last year the over-collection of tax was becoming more broad-based, as the income effect trickled down to other industries. Of course, improved capacity and efficiency at the South African Revenues Service helped, but the impact of high commodity prices far outweighed this. This has helped to provide much required breathing room, and masked expenditure pressures that have been mounting. On the expenditure side we have spent more than R150 billion cumulatively since February 2020 to date, versus what was budgeted at the beginning of each fiscal year.

This should be reflected in lower turnover and tax paid to SARS. The intensity of load shedding and its impact on GDP growth will also have a devastating impact on tax collection.

 

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USA never loved us.

you chasing after taxes 🥴🤡🥴🤣🤡🤡 if you look at the profits these mines take out of SA. if people really understood, there would have been a revolution ages ago. The public is made ignorant of this data on purpose.

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