JOHANNESBURG - Jacob Zuma, who took office in 2009 with the South African Revenue Services having collected R60 billion fewer taxes, left office with the revenue services starring at an R50.8bn revenue shortfall.
The projected revenue was the highest since the 2009 recession, meaning that the Zuma presidency started and ended with record shortfalls.
In the Medium-term Budget Speech on October 2017, Finance Minister Malusi Gigaba indicated that the tax revenue deficit was estimated to be R 50.8bn in 2017/ 18, increasing to R69.3bn in 2018/ 19 and R89.4bn in 2019/ 20.
The massive shortfall saw Finance minister, Malusi Gigaba establish an inquiry into the tax administration.
Gigaba had said at the time that he expected this inquiry to be constructive and to strengthen the institution further where possible.
“It is critical for Government to determine the cause of the tax revenue under-collection in order to enable Government to take urgent remedial steps to ensure that SARS is able to meet its revenue targets as set out in the Medium Term Budget Policy Statement (MTBPS) and Budget,” Gigaba had said.
- BUSINESS REPORT