Rates and Monetary Amounts and Amendment of Revenue Laws Bill, Presenters: Ismail Momoniat & Cecil Morden 18 September 2013

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1 Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2013 Presenters: Ismail Momoniat & Cecil Morden 18 September 2013

2 Contents: Rates & Monetary Amounts Overview Revenue trends Personal income tax brackets and rebates Medical tax credits Savings tax free interest threshold Low-cost housing - cost- Depreciation Small business corporations Specific excise duties Regulations Motor Vehicle CO 2 emissions tax, Plastic bag levy & Incandescent light bulb levy Fuel taxes 2

3 Overview The tax system raises revenue to fund government programmes and deliver services. Taxes are also used to change taxpayers behaviours by influencing market prices (in an attempt to reflect externalities) and various incentives. While the South African economy has continued to grow since the 2009 recession, the moderate pace of economic growth has adversely affected revenue performance. Modest nominal growth tax revenues during 2012/13 is largely the result of weak economic growth during the second half of 2012, labour unrest and lower commodity prices. Tax revenues are expected to improve over the medium-term expenditure framework (MTEF) period in line with expectations of improved economic growth and marginally higher levels commodity prices. Higher revenue collections will depend on an improved economic growth outlook. 3

4 % Gross Tax Revenue as a % of GDP 29.0% Gross Tax revenue / GDP Ratio (National Government, excl. RAF & UIF) 28.0% 27.0% 2007/08, 27.6% 26.0% 25.0% 24.0% 1989/90, 24.7% 2004/05, 24.5% 2012/13, 25.4% 23.0% 22.0% 21.0% 1992/93, 21.9% 20.0% 19.0% 18.0% 17.0% 16.0% 15.0% YEAR 4

5 % Total tax revenue: Direct vs. Indirect taxes since 1983/84 66% Total Tax Revenue: Direct vs Indirect Taxes 64% 62% 2008/09, 62.7% 60% 58% 56% 54% 52% 1993/94, 52.6% 2011/12, 59.1% 50% 48% 46% 44% 42% 2011/12, 40.9% 40% 38% 36% 2008/09, 37.3% 34% 2011/ / / / / / / / / / / / / / / / / / / / / / / / / / / / /84 YEAR Direct Taxes Indirect Taxes 5

6 1980/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /12 % Three main tax instruments as a % of GDP 12% TAX/GDP ratio (three main taxes) 10% 1999/00, 10.3% 8% 6% 4% 2% 1999/00, 2.5% 0% Fiscal Year PIT CIT VAT 6

7 Fiscal Year 2012/13 Tax Revenue Fiscal Year 2012/13 Estimates Differences Tax Revenue: R million: 2012/13 BR MTBPS BR Actual Actual - less BR 2012 Actual - less MTBPS Actual - less BR Persons and individuals Companies Value added tax Fuel taxes Customs duties Specific excise duties STC / WTD Sub - Total Gross tax revenue

8 Tax Revenue 2012/13 R million Gross Tax Revenue R million Personal Income Tax Collections Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2009/ / / / / / / /13 8

9 APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR R' 000 R' 000 CIT Revenue 2012/ Provisional Corporate Income Tax Mining and Quarrying / / / / / / / /13 9

10 Tax Revenue - MTEF Tax Revenue: R million 2011/ / / / /16 1 Persons and individuals Companies Value added tax Fuel taxes Customs duties Specific excise duties STC / WTD Sub - Total Gross tax revenue GDP - Nominal

11 Tax Revenue MTEF: % Share % Share 2011/ / / / /16 1 Persons and individuals 33.7% 33.9% 34.1% 34.0% 33.9% 2 Companies 20.4% 19.5% 19.0% 19.3% 19.5% 3 Value added tax 25.7% 26.5% 27.1% 27.3% 27.7% 4 Fuel taxes 4.9% 5.0% 5.0% 4.7% 4.4% 5 Customs duties 4.6% 4.8% 4.6% 4.6% 4.7% 6 Specific excise duties 3.4% 3.5% 3.5% 3.3% 3.1% 7 STC / WTD 3.0% 2.4% 2.6% 2.6% 2.6% Sub - Total 95.7% 95.6% 95.8% 95.8% 95.9% Gross tax revenue 100% 100% 100% 100% 100% Gross tax revenue/gdp 25.0% 25.4% 25.5% 25.6% 25.7% 11

12 Tax Revenue MTEF: Y-o-Y % Change Y-on-Y % Change 2011/ / / / /16 1 Persons and individuals 10.3% 10.1% 11.0% 10.2% 10.3% 2 Companies 14.1% 4.8% 7.4% 12.1% 12.2% 3 Value added tax 4.1% 13.0% 12.6% 11.3% 12.4% 4 Fuel taxes 6.3% 10.2% 11.5% 3.6% 3.8% 5 Customs duties 26.6% 13.6% 6.9% 11.3% 12.6% 6 Specific excise duties 4.1% 13.0% 9.9% 3.6% 3.8% 7 STC / WTD 27.9% -10.1% 16.2% 12.7% 12.2% Sub - Total 10.3% 9.4% 10.6% 10.4% 10.9% Gross tax revenue 10.2% 9.6% 10.3% 10.4% 10.8% GDP - Nominal 8.7% 7.9% 9.7% 10.2% 10.1% Gross tax revenue/gdp - multiplier

13 Estimated tax revenue impact of Budget 2013 tax proposals Table 4.10 Impact of tax proposals on 2013/14 revenue R million Effect of tax proposals Tax revenue (before tax proposals) Non-tax revenue Less: SACU payments National budget revenue Provinces, social security funds and selected public entities Budget revenue (before tax proposals) Budget 2013/14 proposals: Taxes on individuals and companies Personal income tax Adjustment in personal tax rate structure Adjustment in monetary thresholds -350 Business income tax -860 Employment tax incentive -500 Small business corporations -360 Indirect taxes Increase in general fuel levy Increase in excise duties on tobacco products 855 Increase in alcoholic beverages Increase in incandescent bulb levy 50 Increase in plastic bag levy 90 Increase in CO 2 vehicle emission tax 355 Tax revenue (after tax proposals) Budget revenue (after tax proposals)

14 Personal Income Tax Relief Personal income tax provides the foundation for an equitable and progressive tax system. Personal income tax brackets and rebates are partially adjusted for fiscal drag to take into account some of the wage inflation. The 2013 Budget proposes direct personal income tax relief of R7 billion. In addition, adjustments to the monetary thresholds, such as the medical tax credit, will provide relief of about R350 million. 14

15 Personal Income Tax Brackets Table 4.5 Personal income tax rate and bracket adjustments, 2012/ / / /14 Taxable income (R) Rates of tax Taxable income (R) Rates of tax R0 - R % of each R1 R0 - R % of each R1 R R R % of the amount R R R % of the amount above R above R R R R % of the amount R R R % of the amount above R above R R R R % of the amount R R R % of the amount above R above R R R R % of the amount R R R % of the amount above R above R R R % of the amount R R % of the amount above R above R Rebates Rebates Primary R Primary R Secondary R6 390 Secondary R6 750 Tertiary R2 130 Tertiary R2 250 Tax threshold Tax threshold Below age 65 R Below age 65 R Age 65 and over R Age 65 and over R Age 75 and over R Age 75 and over R

16 Personal Income Tax: Estimates 2013/14 Table 4.6 Estimates of individual taxpayers and taxable income, 2013/14 Taxpayers Taxable income Income tax payable Taxable bracket Number % R million % R million % R million % R million % 0 to R R to R R to R R to R R to R R to R R to R R Total Grand total Personal income tax relief Tax revenue 16

17 PIT History of PIT Relief (fiscal drag) Personal Income Tax Taxable Income Taxable Income Income tax threshold Rebate PIT relief PIT bracket PIT bracket Budget Tax year < and > 75 and > Primary Secondary Tertiary R billion Bottom Top Bottom Top Rand Rand % Change % Change / % 3.5% / % 6.4% / % 5.1% / % 5.1% / % 7.1% / % 8.9% / % 12.5% / % 33.3% / % 11.1% / % 5.9% / % 6.3% / % 11.6% / % 7.5% / % 66.7% / % 0.0% / Avg. pa % increase 9.0% 8.2% 8.6% 6.4% % 11.8% 2013 vs

18 PIT rates Taxable Income PIT bracket Marginal personal incoem tax rate for the six brackets Budget Tax year Bottom Top / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 25% 30% 35% 38% 40% / % 26% 32% 37% 40% 42% / % 26% 32% 37% 40% 42% / % 30% 35% 40% 44% 45% / % 30% 39% 43% 44% 45% 18

19 Personal Income Tax Revenue as a % of Compensation of Employees 1981/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / % "Average Effective" PIT rate: PIT Rev. as a % of COE 21.0% 1999/00, 21.4% 19.0% 17.0% 15.0% 2003/04, 17.1% 13.0% 11.0% 9.0% 7.0% 5.0% 19

20 1983/ / / / / / / / / / / / / / / / / / / / / / / / / / / /11 Personal Income Tax (PIT) PIT, Top Marginal rate (lhs) and PIT as % of GDP (rhs) 55% 11.0% 1998/99, 10.3% 10.0% 50% 45% 1988/89, 45% 1996/97, 45% 2010/11, 8.2% 2006/07, 7.7% 9.0% 8.0% 40% 1992/93, 43% 2000/01, 42% Top M PIT Rate PIT: % of GDP 2002/03, 40% 7.0% 6.0% 35% 5.0% 30% 4.0% 20

21 Medical tax credits: 2013/14 Medical tax credits are a more equitable form of relief than medical deductions because the relative value of the relief does not increase with higher income levels. Monthly tax credits will be increased from R230 to R242 for each of the first two beneficiaries and from R154 to R162 for each additional beneficiary with effect from 1 March

22 Non-Retirement Savings Government intends to proceed with the implementation of tax-preferred savings and investment accounts. All returns accrued within these accounts and any withdrawals would be exempt from tax. The account would have an initial annual contribution limit of R and a lifetime limit of R , to be increased regularly in line with inflation. The new accounts will be introduced by April (For 2014 legislation) In the meantime, with effect from 1 March 2013, tax-free interest-income annual thresholds will be increased from R to R for individuals 65 years and over, and from R to R for individuals below 65 years. These thresholds will not be adjusted for inflation in future years. 22

23 Low cost housing depreciation & UDZ Table C.6 Miscellaneous proposals, 2012/ /14 Description Low-cost housing Max cost of residential unit where that residential unit is an apartment in a building, paragraph (a) Max cost of residential unit where that residential unit is an apartment in a building, paragraph (b) Exempt scholarships and bursaries Illustrative thresholds 2012/13 Proposed thresholds 2013/14 R R R R Annual income ceiling for employees R R Annual ceiling for bursaries to employee relatives higher education Annual ceiling for bursaries to employee relatives basic education R R R R

24 Small business corporations tax relief Government proposes that the R14 million turnover threshold for small business corporations be increased to R20 million and that the graduated tax structure for such corporations be revised. Taxable income Not exceeding R Exceeding R but not exceeding R Exceeding R but not exceeding R Exceeding R Rate of tax 0 per cent of taxable income 7 per cent of amount by which taxable income exceeds R R plus 21 per cent of amount by which taxable income exceeds R R plus 28 per cent of amount by which taxable income exceeds R Table 4.7 Small business corporations, 2012/ /14 Current rates 2012/13 Proposed rates 2013/14 Taxable Income Rate Taxable Income Rate Below R % Below R % R to R % R to R % Above R % R to R % Above R % 24

25 Specific excise duties: Tobacco & Alcohol (1) The excise duties on tobacco products are determined in accordance with a targeted total tax burden (excise duties plus VAT) of 52 per cent of the retail price. Specific excise duties of tobacco products increased between 5.8 and 10 per cent on Budget Day. The current targeted tax burdens (excise duties plus VAT) expressed as a percentage of the weighted average retail selling price for wine, clear beer and spirits are 23, 35, and 48 per cent respectively. Specific excise duties on alcoholic beverages increased between 5.7 and 10 per cent on Budget Day. 25

26 Specific excise duties: Tobacco & Alcohol (2) Table 4.9 Changes in specific excise duties, 2013/14 Current excise Proposed excise Percentage change Product duty rate duty rate Nominal Real Malt beer R59.36 / litre R63.81 / litre 7.5% 1.9% of absolute alcohol (100.98c / average 340ml can) of absolute alcohol (108.48c / average 340ml can) Traditional African beer 7.82c / litre 7.82c / litre 0.0% -5.6% Traditional African beer 34.70c / kg 34.70c / kg 0.0% -5.6% Unfortified wine R2.50 / litre R2.70 / litre 8.0% 2.4% Fortified wine R4.59 / litre R4.85 / litre 5.7% 0.1% Sparkling wine R7.53 / litre R8.28 / litre 10.0% 4.4% Ciders and alcoholic fruit beverages R2.97 / litre R3.19 / litre 7.4% 1.9% (100.98c / average 340ml can) (108.48c / average 340ml can) Spirits R / litre R / litre 10.0% 4.4% of absolute alcohol (R36.00 / 750ml bottle) of absolute alcohol (R39.60 / 750ml bottle) Cigarettes R10.32/ 20 cigarettes R10.92/ 20 cigarettes 5.8% 0.3% Cigarette tobacco R11.05/ 50g R12.16/ 50g 10.0% 4.5% Pipe tobacco R3.22/ 25g R3.54/ 25g 9.9% 4.4% Cigars R53.05 / 23g R56.76 / 23g 7.0% 1.4% 26

27 Motor vehicle CO 2 emissions tax, plastic bag levy & tax on incandescent light bulbs The motor vehicle CO 2 emissions tax encourages consumers to buy vehicles with lower carbon emissions. This tax for passenger vehicles was increased from R75 to R90 for every gram of emissions/km above 120 gco 2 /km and, in the case of double cabs, from R100 to R125 for every gram/km in excess of 175 gco2/km, with effective from 1 April The levy on plastic shopping bags, which has been at 4c/bag since 2009, was increased to 6c/bag as from 1 April The levy on incandescent light bulbs was increased from R3 to R4 per bulb as from 1 April

28 Fuel taxes The general fuel levy and Road Accident Fund levy was increased by 22.5 c/l and 8 c/l respectively with effect from 3 April Since April 2010, the general fuel levy has included a new multi-product pipeline levy (7.5 c/l) component. This component was introduced for 36 months to help fund the construction of additional pipeline capacity and will come to an end on 2 April The net increase in the general fuel levy on 3 April 2013 will thus be only 15 c/l and not the full 22.5 c/l. 28

29 Fuel taxes Table 4.8 Total combined fuel taxes on petrol and diesel, 2011/ / / / /14 93 Octane Diesel 93 Octane Diesel 93 Octane Diesel c / litre petrol petrol petrol General fuel levy Road Accident Fund levy Customs and excise levy Illuminating paraffin marker Total Pump price: Gauteng (as in February) 1 Taxes as percentage of pump price 29.6% 30.3% 26.9% 26.7% 25.9% 26.3% 1. Diesel (0.05% sulphur) wholesale price (retail price not regulated) 29

30 Thank you 30

31 Fuel levy petrol Fuel levy - petrol (Nominal) Fuel levy - petrol (Real) % Change (N) % Change (R) % 21.4% % -12.5% % 27.5% % 2.7% % 1.2% % -8.2% % -5.0% % 6.1% % -1.5% % 5.7% % -0.6% % 0.2% % -3.0% % -8.4% % -2.8% % 8.4% % -2.2% % -3.0% % -1.8% % -4.5% % 10.3% % 7.1% % 0.9% % 5.0% % 1.9% 31

32 Fuel levy petrol cents / litre: (Nominal and Real = 2008 prices) 240 Fuel levy - petrol: Nominal & Real (2008 =100) c/litre , , , , , 60.9 Fuel levy - petrol (Nominal) Fuel levy - petrol (Real) 32

33 Fuel levy revenue Rand million Fuel levy revenue R mn - Nominal & Real (2008 =100) , , Revenue - N Revenue - R - 33

34 1983/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /13 Fuel levy revenue 2011/12: R36.6 billion; 21.7 billion litre; MtCO 2 9.0% 8.0% 7.0% Fuel Levy Revenue: % of Total (lhs); % of GDP (rhs) 2.0% 1.8% 1.6% 6.0% 1.3% 1.4% 5.0% 4.0% 3.0% 2.0% Fuel Levy as % Total Tax Revenue Fuel Levy as % GDP 5.0% 1.2% 1.0% 0.8% 0.6% 0.4% 1.0% 0.2% 0.0% 0.0% YEAR 34

35 Fuel Sales, litres - million Fuel Sales - Litres million , PETROL DIESEL

36 Fuel Litres per real GDP 000 (2005 prices) 15 Fuel / GDP (Litres per R'000 GDP) , ,

37 1983/ / / / / / / / / / / / / / / / / / / / / / / / / / / /11 CIT headline rate and CIT revenue 55.0% 50.0% CIT Headline rate (lhs) and CIT as a % of GDP (rhs) CIT Rate 2008/09, 7.2% 8.0% 7.0% 45.0% 1985/86, 6.0% CIT: % of GDP 6.0% 40.0% 5.0% 35.0% 1995/96, 35.0% 4.0% 30.0% 25.0% 20.0% 1993/94, 2.6% 1999/00, 30.0% 1999/00, 2.5% 2005/06, 29.0% 2008/09, 28.0% 3.0% 2.0% 15.0% 1.0% 10.0% 0.0% 37

38 Average effective corporate income tax rate - % of net operating surplus % "Effective" CIT rate : CIT as a % of NOS 27% 24% 21% 18% 15% 1990, 25% 2008, 23% 12% 9% 2000, 9% 6% 3% 0% CIT/NOS 38

39 CIT Revenue & NOS Net operating Surplus (lhs) & CIT (rhs) NOS (R million) CIT 39

40 R million USD/Barrel CIT Revenue & Commodity Prices CIT Revenue Rmn (lhs) & Oil US$ per barrel CIT OIL (US/BARREL) 40

41 CTI Revenue (provisional) by Sector CIT - Provisional: % Share by sector 2001/ / / / / /13 FINANCE, INSURANCE, REAL ESTATE AND RELATED SERVICES including Long Term Insurers 28% 31% 33% 35% 34% 36% MANUFACTURING 30% 31% 31% 32% 24% 22% RETAIL AND WHOLESALE TRADE 8% 7% 10% 11% 11% 11% TRANSPORT, STORAGE AND COMMUNICATION 8% 6% 6% 9% 8% 8% MINING AND QUARRYING 18% 17% 11% 4% 11% 8% SPECIALISED SERVICES 4% 3% 4% 4% 5% 4% OTHER 1% 0% 0% 0% 2% 4% AGENCIES AND OTHER SERVICES 1% 1% 2% 2% 2% 2% CONSTRUCTION 1% 1% 1% 1% 2% 2% AGRICULTURE, FORESTRY AND FISHING 1% 2% 2% 2% 1% 2% ELECTRICITY, GAS AND WATER 1% 1% 1% 1% 1% 1% 41

42 Estimated Tax Expenditure (Tax revenue forgone as a result of tax incentives) Table 4.4 Summary of tax expenditure estimates 2007/ /11 R million 2007/ / / /11 Personal income tax Corporate income tax Value-added tax Customs and excise duties Total tax expenditure Tax expenditure as percentage of total gross tax revenue 13.2% 12.7% 14.1% 15.6% Total gross tax revenue Tax expenditure as percentage of GDP 3.6% 3.5% 3.4% 3.8% 1. Retirement savings and medical expenses 2. Investment incentives, urban development zones, research and development, and learnerships 3. Zero-rating of basic food stuffs, petrol and diesel 4. Motor industry, textiles, agriculture and mining 42

43 Tax revenue 2012/13 Gross Tax Revenue 2012/13 Rand mn % Cumulative % 1 Personal income tax 275, % 33.9% 2 Value added tax 215, % 60.4% 3 Corporate income tax 158, % 79.9% 4 Fuel levy 40, % 84.9% 5 Custom duties 35, % 89.2% 6 Specific excise duties 28, % 92.7% 7 STC / WTD 19, % 95.2% 8 Skills development levy 11, % 96.6% 9 Transfer duty, STT, etc. 8, % 97.6% 10 Electricity levy 7, % 98.6% 11 Other 11, % 100.0% TOTAL 813, % Environmentally related taxes R million 2012/13 1 General fuel levy 40,320 2 Air passenger departure tax Plastic bag levy Electricity levy 7,984 5 Incandescent light bulb levy CO2 Vehicle emissions tax 1,568 Sub Total 51,029 TOTAL Tax Revenue 813,834 Sub Total / TOTAL 6.3% 43

44 Department of Transport Transport - National - Budget Allocations R' / / /15 1 Departmental baseline 23,021,852 28,418,447 29,725,696 SANRAL: National Road Agency: Capital 6,394,541 7,515,300 7,849,560 SANRAL: National Road Agency: Coal haulage 648, , ,111 PRASA: Passenger Rail Agency of SA 7,481,110 10,710,959 13,865,547 Compensation of employees 381, , ,101 Other 8,115,969 9,120,942 6,884,377 2 Conditional Grant to Local Government 5,589,135 5,912,264 6,184,228 Public Transport: Infrastrcuture & Network Operations 3 Conditional Grant to Provincial Government 13,093,000 13,735,539 14,367,374 Provincial Road Maintenance 8,540,479 8,952,830 9,364,661 Public Transport Operation 4,552,521 4,782,709 5,002,713 4 Net additions (e.g. PRASA) 571, ,960 3,100,381 5 TOTAL 42,275,300 48,223,210 53,377,679 44

45 Medical Scheme contributions and other medical expenses - past reforms 2005/06: An employer could contribute up to two-thirds of the member s contribution as a tax-free fringe benefit 2006/07: 2/3rds tax-free provision was replaced by a monthly monetary cap (to encourage broader medical scheme coverage, extend tax benefit to self-employed individuals & achieve a more equitable tax treatment) Medical scheme contributions paid by taxpayers tax deductible (taxfree if the employer pays) subject to monthly caps(r500 first two beneficiaries % R300 for all other beneficiaries) 2007/08, 2008/09 & 2009/10: monthly caps increased: R530 & R320, and R570 & R345 and R625 & R /11- The tax-free fringe benefit for employer contributions was removed. However, employees can claim deduction for med scheme contributions, whether made by employee or by employer on behalf of employee up to the cap. Impact on employees neutral. 2010/11 & 2011/12: monthly caps: R670 & R410, and R720 & R440 45

46 Medical tax credits: 2014/15 (Not in this Bill) The tax credits will, as from 1 March 2014, apply to all taxpayers. Additional medical deductions will be converted into tax credits at a rate of 25 per cent for taxpayers aged below 65 years. Additional medical deductions will be converted into tax credits at a rate of 33.3 per cent for taxpayers below 65 years with disabilities or dependants with disabilities. Taxpayers 65 years and older will be able to convert all medical scheme contributions in excess of three times the total allowable tax credits plus out-of-pocket medical expenses into a tax credit of 33.3 per cent. Note that the 7.5 per cent threshold will continue not to apply in the case of taxpayers 65 years and older and those with disabilities or dependants with disabilities. Employer contributions to medical schemes on behalf of ex-employees will be a taxable fringe benefit and such ex-employees will be able to claim the appropriate tax credits. 46

47 Corporate Income Tax (1) Tax year 2008 [102.2% assessed tax as % of provisional tax] 2009 [97.0% assessed tax as % of provisional tax] 2010 [90.2% assessed tax as % of provisional tax] Economic activity 1 Number of taxpayers Taxable income (R million) Tax assessed (R million) Number of taxpayers Taxable income (R million) Tax assessed (R million) Number of taxpayers Taxable income (R million) Tax assessed (R million) Total < 0 taxable income Total = 0 taxable income Total > 0 taxable income Total Total (1) Net

48 Corporate Income Tax (2) Tax year 2008 [102.2% assessed tax as % of provisional tax] 2009 [97.0% assessed tax as % of provisional tax] 2010 [90.2% assessed tax as % of provisional tax] Economic activity 1 Number of taxpayers Net Taxable income (R million) Tax assessed (R million) Number of taxpayers Net Taxable income (R million) Tax assessed (R million) Number of taxpayers Net Taxable income (R million) Tax assessed (R million) 1 Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity, gas and water Construction Wholesale and retail trade, catering and accommodation Transport, storage and communications Agencies and other services Financing, insurance, real estate and business services Long term insurance Research and scientific institutes Community, social and personal services Other Total Total (1) Net Total (2) Net positive Total > 0 taxable income Total < 0 taxable income

Revenue trends and tax policy

4 Revenue trends and tax policy In brief Nominal gross tax revenue for 2013/14 amounted to R900 billion, a 10.6 per cent or R86.2 billion increase from the prior year. The 2014 Budget projected 10.5 per