The South African Revenue Service (SARS) has managed to collect R1.216 trillion in the 2017/18 financial year.
Finance Minister Nhlanhla Nene made the announcement at a briefing on Tuesday morning.
“SARS collected a gross amount of R1451.0 billion which was offset by refunds of R234.3 billion, resulting in net collections of R1216.6 billion,” said Minister Nene.
The Minister was flanked by his Deputy Minister Mondli Gungubele and Acting SARS Commissioner Mark Kingon at the briefing.
The R1216.6 billion, which is a preliminary result and is subject to a final audit, falls short of the forecasted revised estimate announced by the Minister of Finance in the February 2018 Budget speech of R0.7 billion which is 0.06%.
Despite falling short of its target, the taxman said the collection represents a growth of R72.4 billion (6.3%) compared to the 2016/17 financial year.
The main sources of revenue that contributed to the R1216.6 billion were Personal Income Tax (PIT) at R462.5 billion (38.0%), Value-Added Tax (VAT) at R297.8 billion (24.5%), Company Income Tax (CIT) at R220.2 billion (18.1%) and customs contributed R49.4 billion (4.1%).
The 2017/18 financial year was characterised by distinct and clearly delineated growth patterns. Until December 2017, revenue in aggregate grew by 6.2% year-on-year.
“For the period December to February 2018, revenue growth, on a month-on-month basis accelerated to between 9.5% and 15.5%, strengthening aggregated year-on-year growth to about 7.3%,” said Minister Nene.
SARS attributed the strengthening of revenue growth during this three-month period to:
- An improvement in business confidence to levels last seen in 2015, resulting in improved profit outlook