While South Africa’s economy continues to face challenges of load shedding and impaired port and logistics operations, the South African Revenue Service (SARS) has collected a gross tax revenue of R2.155 trillion for the 2023/24 financial year.
SARS Commissioner Edward Kieswetter briefed the media on
Tuesday on the preliminary revenue outcome for the 2023/24 financial year
“Net revenue, which is the revenue after refunds have been paid to tax payers amounts to R1.741 trillion, which exceeds the revised estimate set by the Minister of Finance by some R10 billion, representing a year on year growth of 3.2% (or R54.2billion) more than last year. This revenue performance translates to a tax-to-GDP ratio of 24.7% and a provisional tax buoyance ratio of 0.9% at gross level and 0.7% at net revenues.’’
COURTESY - X - @sarstax: SARS Commissioner, Edward KieswetterThe revenue service refunded taxpayers with an amount of
R414 billion, representing a year-on-year growth of 6%, which is the highest
quantum of refunds paid out in the history of SARS. It increased by R33 billion
from the prior year. Vat refunds amounted to R343 billion, which
represents a growth of 7.5% since the prior year.
“Noteworthy is that those refunds represent about 6% of
GDP. It is therefore pleasing that R120 billion of these refunds were directed
to Small, Medium and Micro Enterprises (SMMEs) and R37 billion to individuals.
This is good for when business and individuals remain cash strapped. Refunds
are often a form of funding during troubled times.
“Whilst we are pleased that the R414 billion returned into
the hands of taxpayers is good for the economy, I remain concerned about fraud
and abuse of our refund system. In the period under review, SARS was able to
prevent the outflow of R101 billion of impermissible or fraudulent refunds and
secure a number of successful prosecutions,” added Kieswetter.
In trade facilitation for the period under review, SARS
Customs facilitated a total of R8.5 million trade transactions amounting to
R3.96 trillion. Exports amounted to just over R2 trillion, whilst imports were
R1.937 trillion, resulting in a trade balance surplus of R11 billion.
“Our programme for Authorised Economic Operators (AEO),
which is designed to give traders a green lane experience should they be
accredited and maintain the high level of compliance, this year we added R145
new licensees, bringing the total number to 304 AEO.’’
“In our compliance environment, an encouraging trend is
that we have increased our voluntary compliance index from 61.6% to 63.9%. This
index was developed in 2020 in support of our strategic intent of our voluntary
compliance and measures the overall compliance behaviour of tax payers across
the compliance value chain of registration, filing declaration and payment,”
the Commissioner said.
Kieswetter says SARS is pleased that taxes are being paid
and public confidence has increased
In terms of Revenue by tax products, and Compared to the
2022/23 fiscal year, SARS Commissioner Edward Kieswetter says total tax revenue
increased by R54.2 billion (3.2%), driven by personal income taxes of R49.5
billion (8.2% year on year or y/y) on the back of higher than estimated
compensation of employees, as well as higher domestic VAT of R39.3 billion
(8.1% y/y).
Kieswetter also reflected on its auto-assessment tax
returns
‘’Through our continued application of third party data
source\s and automation, we were able to provide a seamless experience of about
four million taxpayers who was assessed without making a return. In this
process, an additional 2.5 million tax payers process, as well as impermissible
refunds adding R21.5 bn. Those who did a return would receive an assessment
under 5 seconds. Refund would be processed within 72hrs.’’
SARS Commissioner Edward Kieswetter has urged tax payers to
do their research when approaching tax practioners, to avoid fraud and
corruption
The full #SarsRevenue presentation can be downloaded here: https://t.co/93CuPMIUeg
— SA Revenue Service (@sarstax) April 2, 2024
Revenue Tables are also available here: https://t.co/nxTKKupCxE
Done By: Mitchum George
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