South Africa’s Recession to Hit Revenue Collection, Says Finance Minister Nene

JOHANNESBURG (Reuters) – South Africa’s Finance Minister Nhlanhla Nene said on Monday that there is a significant downside risk to revenue collection due to a recession and problems in tax collection by the revenue service.

South Africa’s Finance Minister Nhlanhla Nene arrives at G-20 plenary during the IMF/World Bank spring meeting in Washington, U.S., April 20, 2018. REUTERS/Yuri Gripas

“There is now additional downside risk to the tax revenue projected at the beginning of the year because of the contraction in the economy in the first six months of the year,” Nene told an annual meeting on tax collection.

“Fixing our economy to ensure that it grows faster and in a more sustainable manner is therefore critical.”

(Reporting by Mfuneko Toyana; Writing by James Macharia; Editing by Matthew Mpoke Bigg)