More than R1tn collected in tax revenue
The South African Revenue Service (SARS) has collected R1.356 trillion in revenues for the 2019/20 financial year, a year-on-year growth of 5.3%.
SARS commissioner Edward Kieswetter briefed the media on the preliminary outcome of revenue collection results, saying SARS had its work cut out for it.
“This result is net of R291 billion of refunds that we paid to taxpayers and it was retrieved in a struggling economy,” says Kieswetter.
“Personal income taxes we collected R528.9bn which represents 49% of our total revenue and a growth of 7.1% to prior year. CIT R214.7bn or 15.8% of our total revenue, a growth of only 0.1% mostly reflecting underperforming companies.”
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This comes after Moody's became the third and final credit ratings agency to downgrade South Africa to 'junk' status, a move the government admitted "could not have come at a worse time". Fitch Ratings has also downgraded South Africa's five largest banks deeper into junk, citing a deteriorating operating environment following the Covid-19 outbreak.
At least R127 billion was collected from excise tax, R55.4 billion from customs and R16 billion from property taxes.
Kieswetter says they were able to refund taxpayers with R292 billion.
“We have also been able to pay R292 billion in refunds largely made up of R232.5 billion paid out in VAT refunds, R19.3 billion paid out in CIT refunds, R31.4 billion in terms of personal tax and R8.8 billion in diesel refunds,” Kieswetter explains.
Kieswetter admits testimony given at the commission of inquiry into state capture has affected public confidence in the taxman but says the new financial year is an opportunity to turn the tide.
“The ongoing work to rebuild Sars and to improve the culture of voluntary compliance, to ensure that we collect the taxes and customs revenue and facilitating legitimate trade across our borders is essential to our mandate.”