South Africa's R10bn tax surplus
Posted Mon, 04 Apr 2005
The South African Revenue Service (Sars) collected a whopping R354.9-billion in taxes during 2004/05 financial year, exceeding its revised target by almost R10-billion and its original target by R21-billion.
According to Business Day, the revenue haul will help trim South Africa's budget deficit for 2004/05 from 2.3% to 1.6% of gross domestic product (GDP).
On top of this, Business Day reports that Sars expects to recover between R15-billion and R20-billion in unpaid taxes and arrears for 2004/05.
Sars original target, announced in February 2004, was R333.7-billion. This was later revised to R345.3-billion.
Announcing Sars' year-end results in Pretoria on Friday, Finance Minister Trevor Manuel said the results flowed from an outstanding performance by Sars staff and the efficiency of the systems that the receiver had put in place.
"The IT systems, the communication systems and the call centres are better synchronised than ever before", Manuel said, adding
that SA businesses and individuals were responding positively to efforts to improve collection and narrow the tax gap.
"This ensures a resilient foundation and sustainable revenue for the second decade of our democracy", the minister said.
Sars Commissioner Pravin Gordhan said the organisation was beginning to reap the fruits of good policy decisions and positive compliance from South Africans at large.
Of the total, personal income tax yielded R111-billion, company tax yielded R70.6-billion, and valued added tax (VAT) yielded R97-billion. The original target was R345.3-billion.
According to Business Day, the higher corporate tax performance reflected strong growth in the country's financial services, retail, telecommunications and insurance sectors.
Manuel attributed the strong personal income tax performance to increased employment and remuneration levels.
There are currently about four million registered individual taxpayers in South
Africa.
SouthAfrica.info reporter
| 
