SARS revenues hit trillion rand mark, again
The South African Revenue Service (SARS) has collected R1.144 trillion in revenues for the 2016/17 financial year.
SARS Commissioner Tom Moyane briefed the media on the preliminary outcome of revenue collection results, saying SARS broke the trillion rand mark for a second year in a row by collecting, in gross terms, R1.367 trillion.
The preliminary outcome for 2016/2017 financial year, net of refunds of R222.4 billion, is therefore R1.144 trillion.
"The preliminary results show SARS having exceeded the revised estimate by over R300 000. Much more significant is that, for the second year in a row, SARS broke the trillion rand mark," said Moyane.
Moyane added that they recorded a growth in refunds, for the same financial period, of 8.6 percent.
"VAT refunds included outstripping revenue growth, which was 7 percent," said Moyane.
Moyane said SARS' revenue collection efforts was made even more difficult given significantly declining consumption levels constrained further by an interest hike cycle and deteriorating business confidence.
"The declining currency exchange rate provided real challenges to foreign business exposure. As noted in the 2017 National Budget Speech, the projected rate of economic growth is not sufficient to reduce unemployment or impact significantly on poverty and inequality" said Moyane.
Meanwhile, newly-appointed Finance minister Malusi Gigaba praised SARS for what he called "a heroic effort".
"Despite difficult economic times, our SARS officials were not to be distracted, but focussed on the task at hand and were able to induce both individual South Africans as well as corporates, to pay their taxes and thus fulfil our obligations to the Republic," said Gigaba.
Gigaba said he hopes that South Africans appreciate the importance of SARS and its work.
"SARS is an absolutely critical fiscal organisation in this country and the republic needs it to work well."