Positive signs emerging in South Africa’s fiscal situation!

South Africa’s latest government revenue and expenditure data surprised on the upside, suggesting the country may stay on track to achieve fiscal consolidation this year despite sluggish economic growth.

This is according to Stanlib Chief Economist Kevin Lings, who noted that South Africa’s National Treasury’s data on government revenue and expenditure was better than expected.

A detailed breakdown of the tax revenue data reveals that individual income tax has risen by a respectable 8.4% y/y in the first five months of the tax year, while corporate tax collection has increased by 6.9%.

Importantly, VAT receipts are up a substantial 11.4% y/y, helped by a drop in VAT refunds.

Source: Business Tech