SARS collected R2 trillion in taxes for the 2023/24 fiscal year. Image: iStock.
SARS collects R2 trillion in taxes, R10bn higher than estimated
Despite collecting R10 billion higher than anticipated tax, SARS Commissioner says he worries about refund fraud and abuse.
SARS collected R2 trillion in taxes for the 2023/24 fiscal year. Image: iStock.
The South African Revenue Service (SARS) attributes its record R2 trillion tax collection to compliance efforts.
SARS announced its preliminary revenue collection outcome for the 2023/24 fiscal year on Tuesday, 2 April.
SARS COLLECTS R2 TRILLION IN TAXES
The revenue service said that, as of the end of March 2024, it had collected a record gross amount of R2.15 trillion, a year-on-year 4.2% increase against the nominal GDP of 4.9%.
SARS paid out refunds of R414 billion to taxpayers, the highest ever quantum in refunds compared to R381 billion in the previous year. This, too, represents a growth of 8.6%.
“This brings the collected net amount to R 1.74 trillion, which is almost R10 billion higher than the revised estimate and R54 billion more than last year’s R 1.687 trillion,” the revenue service said.
SARS Commissioner Edward Kieswetter said they are pleased that the R414 billion returned to taxpayers is good for the economy. However, he remains concerned about refund fraud and abuse.
The revenue service said:
- Compared to the 2022/23 fiscal year, total tax revenue increased by R54.2 billion (3.2%), driven by personal income taxes of R49.5 billion (8.2% year-on-year) on the back of higher than estimated compensation of employees, as well as higher domestic VAT of R39.3 billion (8.1% y/y).
- Net Personal Income Tax, which accounts for 37.3% of total revenue, grew by R49.5 billion 8.2% in 2023/24, as employment improved year-on-year and average wage settlement rates improved from an annual average of 6.0% in 2022 to 6.3% in 2023. PAYE collections from incentives and bonus payments, predominantly from the finance sector, also boosted PIT revenue.
“Ultimately, we are augmenting the work of our employees, with the investment in data science, technology, and artificial intelligence, towards the goal of making the fulfilment of tax obligation a seamless process.”
“I would like to express my sincere gratitude to all South Africans, especially compliant taxpayers and traders as well as all SARS employees, for contributing to this significant revenue outcome,” Kiesweter added.
HOW MUCH DID THE REVENUE SERVICE COLLECT THE PREVIOUS YEAR?
In 2023, SARS said it was the first time since its formation that it collected more than R2068 billion in gross tax for the 2022/23 fiscal year.
This was a 9.7% increase from the previous year.
“SARS employees, compliant taxpayers, and traders, tax practitioners, citizens, as well as other stakeholders in the tax eco-system, are all nation builders as we work together towards the goal of deepening our democracy and overcoming the challenges of high levels of poverty, unemployment, and inequality,” Kieswetter said.
