SA’s tax revenue expected to grow significantly

South Africa is one of several African countries expecting a significant growth in tax revenue. This is one of several trends emerging from the latest Africa Tax Outlook (ATO) report.The ATO makes projections about future tax revenue based on tax buoyancy and tax stability. To calculate these projections, the ATO looks at the tax revenue collected 10 years ago and uses that information to estimate the revenue that may be collected in 2023.In that regard countries with high positive tax buoyancy (higher than 1) which will see their tax revenue increase more than the tax collected the current year include Burkina Faso (4.08); Cote d’Ivoire (5.48); Madagascar (3.11); Nigeria (4.85) and South Africa (4.82) on the top of the list.The 2022 African Tax Outlook report - the pre-eminent resource on tax policy and administration in Africa covering 37 African tax administrations is being launched today (July 26, 2023).The report highlights one way for African governments to improve revenue collection is by harnessing the potential of ICT and digital technologies to enhance tax administration efficiency.“In tax administration, that should play a critical role in enabling the vision of the modern tax administration such as cutting costs, minimising tax fraud, and empowering employees to deliver high value services to taxpayers,” said Frankie Mbuyamba, ATAF Manager Regionalisation and Senior Specialist: African Tax Outlook. DigitalisationHe added that most ATO countries had started to embrace digitalisation - with countries such as South Africa, Mauritius and Kenya leading the way.“However, this can mainly be seen on few tax administration processes such as registration, filing and payment of taxes. There is need to leverage the use of ICT and digital technologies more than is currently the case,” he added.“The ATO database continues to grow and deepen trust in its dataset and publications,” said the ATAF executive secretary Logan Wort. “Despite the challenges of gathering information, available data shows that ATO countries are determined to improve their tax administration efficiency, narrow the tax gap, broaden the tax base, and improve compliance levels through use of technology-based solutions,” Wort added.The 2022 ATO is being launched during ATAF’s annual database training at the Southern Sun Hotel, Sandton.The launch will include a presentation on the tax policy recommendations developed following the research. These recommendations include items such as VAT implementation across the continent, the harmonisation of corporate income tax, diversifying sources of Personal Income Tax (PIT), excise duty rates, taxing the informal sector, harnessing the potential of non-tax revenues, introducing environmental taxes and growing the tax base. There are additional recommendations to support tax and customs administration strengthening.

SA’s tax revenue expected to grow significantly

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Republikein 2025-11-04

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SA’s tax revenue expected to grow significantly

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