South Africa will from March 1 this year levy mining royalties that were postponed due a recession last year, the National Treasury said in the 2010 Budget Review on Wednesday.
“The introduction of mining royalties was postponed for a year due to the recession and will be levied on minerals disposed of or exported from March 1 2010,” the Treasury said.
South Africa’s first recession in almost two decades hurt company earnings and household budgets. Due to the recession government revenue was R73,7-billion short of the targeted R731,235-billion for 2009/10.
The Treasury said it expected 2010/11 to be another challenging year for revenue and it will rise slightly to R738,404-billion in 2010 financial year.
There were no changes to corporate tax and this category will continue to be under pressure in 2010/11 due to the effects of the economic recession last year. Company tax is expected to be R30-billion less than expected and over 20% less than the amount collected in 2008/09.
The Treasury said it would not increase the overall tax burden this year but may have to raise taxes in future to fund public spending commitments.
The Treasury proposed a R6,5-billion tax relief for households mostly to lower income earners to help sustain the economic recovery but motorists will be hit with 25,5 cents a litre fuel tax. – Reuters