SARS collects R2 trillion in taxes
Despite collecting R10 billion higher than anticipated tax, SARS Commissioner says he worries about refund fraud and abuse.
The South African Revenue Service (SARS) is attributing 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 TAX
The revenue service said as at the end of March 2024, it has collected a record gross amount of R2.15 trillion, which is 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 1.741 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 while they are pleased that the R414 billion returned into the hands of taxpayers is good for the economy. However, he remains concerned about the refund fraud and abuse.
HOW MUCH DID THR REVENUE SERVICE COLLECT THE PREVIOUS YEAR?
In 2023, SARS said it is the first time since it was formed 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.
ALSO READ: How to save fuel in South Africa