Kiswetter: COVID-19 to have long-term knock-on effect on tax collection
The economy is expected to likely contract by 7% this year due to a number of pre-existing economic problems before the outbreak of the COVID-19 pandemic.
JOHANNESBURG – South African Revenue Service (Sars) Commissioner Edward Kieswetter on Wednesday said that more than 30,000 companies were battered by COVID-19, leaving them with no choice but to retrench staff and file for business rescue or liquidation.
The economy is expected to likely contract by 7% this year due to a number of pre-existing economic problems before the outbreak of the pandemic.
Kieswetter said that the impact of the coronavirus and the lockdown would not only see a decline in tax collection this year but would also have a long-term knock-on effect.
He said that businesses had collapsed and certain jobs would no longer be available in the future.
“Some of these businesses and jobs we have lost may never come back immediately, and so our long term concern – notwithstanding this year’s revenue decline – is that for the foreseeable future we have a contracting revenue base,” Kieswetter said.