Question NW3349 to the Minister of Finance

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02 October 2015 - NW3349

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

What was (a) the total (i) revenue collection target, (ii) actual revenue collected and (iii) variance between the revenue target and revenue collected and (b) the breakdown of the total (i) revenue collection target, (ii) actual revenue collected and (iii) variance between the revenue target and revenue collected during the period 1 April 2015 up to the latest specified date for which information is available?

Reply:

(a) The National Treasury publishes detailed statement on actual tax revenue received into the National Revenue Fund on a monthly basis in the Government Gazette and on its website. This is done within 30 days after the end of each month, in terms of section 32(1) of the Public Finance Management Act 1 of 1999. The latest available monthly statement is for the period ending 31 July 2015, which was published as part of on 28 August 2015 (refer to Statement of the National Revenue, Expenditure and Borrowing as 31 July 2015 published by the Director-General of the Treasury, as attached). The data for the period ending August 2015 will be published by the end of September 2015.

The information below refers to the annual tax revenue targets as published in the 2015 Budget Review, and the actual collections for the year to date for this fiscal year and the previous fiscal year. The Treasury does not publish monthly revenue targets as these can be subject to great volatility. As you are aware, the Treasury does revise the annual tax revenue targets in October every year during the Medium Budget Policy Statement, and again in the annual Budget.

(i) The total (gross) tax revenue target for the 2015/16 fiscal years is R1 081 275 million. This is R94 992 million, or 9.6 per cent, higher than the actual collections of R986 283 million for the previous fiscal year.

(ii) The actual total tax revenue collections for the period April to July 2015 (the first four months of the 2015/16 fiscal year) amounted R309 742 364 million. The actual total tax revenue collections for the period April to July 2014 (the first four months of the 2014/15 fiscal year) amounted R279 047 million.

(iii) Hence the actual total tax revenue collections during the first four months of the 2015/16 fiscal year is R29 376 million, or 10.5 per cent, higher that for the same period last year.

(b) The table attached (Statement 1 as published on 28 August 2015) provides the breakdown of the aggregate (total) data provide in (a) by tax type. The table indicates that in nominal terms corporate income tax revenue, during the first four month of the 2015/16 fiscal year, were below the actual collections during the first four months of the previous fiscal year by 1.5 per cent. This may be an indication that total corporate income tax revenue for the 2015/16 fiscal is likely to be below the target for the year. It should, however, be noted that most corporate tax revenue is collected at the end of each quarter with June and December the more important months.

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