THE South African Revenue Service (SARS) has collected more than R1-trillion in tax revenue — the first time it has done so.
SARS
collected R1.069-trillion — R200m more than the agency’s target in the
2015-16 tax year, which ended on March 31. In the previous financial
year it exceeded its tax revenue target by R7.4bn, collecting R986.4bn.
The Treasury believes the higher tax revenue collected may help the government meet its budget deficit target of 3.9% of gross domestic product for the 2015-16 fiscal year. This means it will be able to borrow less sooner than originally expected.
"The (budget) deficit outcome looks really achievable. If anything, (it) could be better. We are still … looking at an improving situation going forward," Treasury director-general Lungisa Fuzile said at a briefing on Friday.
SARS commissioner Tom Moyane attributed the increase in collections to improvements to the agency’s operating model.
"Part of this ... has been a more hands-on approach (to) revenue collection," Mr Moyane said.
The increase in tax revenue could be a result of greater awareness among taxpayers. Improved capacity at SARS, made possible by the Tax Administration Act, also helped, the national head of tax training at Mazar, Diane Seccombe, said.
The act allows SARS to collect outstanding tax from third parties that owe money to a noncompliant taxpayer.
Collections for all categories of tax increased. Personal income tax collections were R389.3bn, R35.3bn higher than the amount collected in the previous financial year. The Treasury increased personal income taxes marginally last year.
Corporate income tax collections amounted to R193.5bn, R6.9bn higher than the R186.6bn in the previous year.
Value-added tax collections went up R19.5bn to R280.8bn, and customs and excise duties rose by R15.2bn to R151.8bn.
The tax revenue collection figures are preliminary; final numbers are expected next month.
In spite of the increase, Finance Minister Pravin Gordhan says expected economic growth of 0.9% for the year is not nearly enough to "generate the kind of revenue that enables us to fund all of government’s programmes".
The Treasury believes the higher tax revenue collected may help the government meet its budget deficit target of 3.9% of gross domestic product for the 2015-16 fiscal year. This means it will be able to borrow less sooner than originally expected.
"The (budget) deficit outcome looks really achievable. If anything, (it) could be better. We are still … looking at an improving situation going forward," Treasury director-general Lungisa Fuzile said at a briefing on Friday.
SARS commissioner Tom Moyane attributed the increase in collections to improvements to the agency’s operating model.
"Part of this ... has been a more hands-on approach (to) revenue collection," Mr Moyane said.
The increase in tax revenue could be a result of greater awareness among taxpayers. Improved capacity at SARS, made possible by the Tax Administration Act, also helped, the national head of tax training at Mazar, Diane Seccombe, said.
The act allows SARS to collect outstanding tax from third parties that owe money to a noncompliant taxpayer.
Collections for all categories of tax increased. Personal income tax collections were R389.3bn, R35.3bn higher than the amount collected in the previous financial year. The Treasury increased personal income taxes marginally last year.
Corporate income tax collections amounted to R193.5bn, R6.9bn higher than the R186.6bn in the previous year.
Value-added tax collections went up R19.5bn to R280.8bn, and customs and excise duties rose by R15.2bn to R151.8bn.
The tax revenue collection figures are preliminary; final numbers are expected next month.
In spite of the increase, Finance Minister Pravin Gordhan says expected economic growth of 0.9% for the year is not nearly enough to "generate the kind of revenue that enables us to fund all of government’s programmes".
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