Corporate profits and rising precious metals prices boost South Africa's revenue projections

RISING corporate profits, particularly from the precious metals miners, higher revenue from the fuel levy and from VAT receipts have allowed the government to revise its revenue outlook upward by R21.3 billion from its previous estimates last year, despite low economic growth.

- EDWARD WEST

National Treasury said the government has received more VAT than it previously expected, corporate income tax and dividends collections have improved in the in-year outlook, while personal income tax and specific excise collections are expected to fall short of the government's Budget 2025 projections.

For instance, personal income tax revenue of R786,21bn is expected to be 7,7% lower than the estimate at the last Budget, while corporate income tax of R346,58bn is expected to be 8,7% higher than the estimate a year ago.

National Treasury says personal income tax fell due to low growth in private sector wages. Corporate income tax growth, however, was broad-based, although it declined in the manufacturing sector.