Chapter four: Economic governance and management received adjustment payments due under the previous SACU revenue-sharing arrangements. Over the six financial years, SACU revenue has provided more than half of all domestic revenue (50.1 per cent). In absolute terms, SACU revenue rose to over M4 billion in 2007/2008. Figure 4.3: Trends in SACU revenue 4,500 4,000 Million Maloti 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 Source: Adapted from Background Document to the 2008/2009 Budget. 112 400. Income tax has grown by an average of 12.8 per cent annually between 2002/2003 and 2007/2008 and has generated 20.5 per cent of total domestic revenue. There were large increases in the nominal collections of income taxes. These culminated in an exceptional increase of 36.2 per cent in 2003/2004). However, growth was actually negative at -1.2 per cent in 2004/2005 and then turned positive with 2.6 per cent and 5.5 per cent growth rates in 2005/2006 and 2006/2007 respectively. There was a large (25.3 per cent) increase in income tax revenue in 2007/2008. Contrary to a priori expectations, company tax increased in both 2006/2007 and 2007/2008 following a reduction in the standard rate of company tax from 35 per cent to 25 per cent, a reduction from 15 per cent to 10 per cent for manufacturing firms exporting within SACU, and a reduction from 15 per cent to 0 per cent for extra-SACU exporters in 2006/2007. This was partly because of the exceptional performance of a small number of large companies in the banking, telecommunication and mining sectors and improvements in the tax collection system. 401. Nontax revenue comprises property income, which contributed 23 per cent of nontax revenue in 2007/2008, and sales of goods and services, which contributed 67 per cent of nontax revenue. Dividends are the most important source of property income and water royalties the most important source of income from goods and services. 402. Although nontax revenue has grown at an annual average rate of 8.4 per cent for the previous six years, its share of total domestic revenue throughout the six years to 2007/2008 is only 11.1 per cent. The improvement in fiscal revenue and the consequent increase in government balances should result in a significant increase in property income in future.