The South African Revenue Service (SARS) says that load shedding has taken a toll on tax collection, specifically Value-Added Tax revenue.<\/p>\n
During a standing committee on finance on\u00a019 April<\/a><\/strong>, the tax authority said that severe and frequent rolling blackouts had cost SARS up to R60 billion in tax collections.<\/p>\n The group’s chief revenue officer Johnstone Makhubu said that in the 2022 year, load shedding cost the group roughly R60 million; however, there is an immediate effect and a lag effect relating to the blackouts and tax collections.<\/p>\n He said that the lag effect is most likely felt in corporate income taxes over the long term.<\/p>\n VAT collections feel the effect of load shedding first as sales decline, said Makhubu.<\/p>\n SARS is likely to feel the R60 billion loss over the course of this year as load shedding persists and more financial filings are completed.<\/p>\n Load shedding is showing no sign of slowing down especially going into the upcoming winter months when demand is expected to skyrocket. Eskom said that the country s currently on a rotational schedule between stage 5 and stage 6 indefinitely.<\/p>\n In South Africa, vendors are subject to a 15% standard VAT rate on goods and services provided, with only a select range of goods and services being exempt or taxed at a zero rate.<\/p>\n