Larry Claasen
2 minute read
27 Jan 2021
7:03 am

‘Expect a lower tax shortfall’

Larry Claasen

Tax revenues were primarily boosted by rises in value-added tax, fuel taxes and excise duties.

National Treasury. File photo

National Treasury could be on track to have a better fiscal cushion for the 2020/21 budget than it initially projected. It anticipated that the tax shortfall would be as much as R300 billion in the Medium-Term Budget Policy Statement in November 2020. But in a research note released on Monday, HSBC Global Research says the shortfall does not look like it will be as high as first thought, as gross tax collection in November was up 3%, measured year-on-year. HSBC now expects the tax shortfall to be R251 billion and the deficit to be 13.5% of GDP, as compared with...