SARS Collects A Record Amount Of Tax From South Africans

by Robert Lee, Tax-News.com, London

06 October 2005

A growing national economy, strong consumer spending and improved collection has helped the South African Revenue Service (SARS) to amass a record amount of tax revenues in the past year, SARS Commissioner Pravin Gordhan stated in the tax office's annual report.

According to Commissioner Gordhan, the healthy state of the economy contributed to a "dramatic increase" in tax collections, which by the end of March 2005 had reached R354.98 billion, a little under R10 billion higher than the estimated revenue count.

Corporate income tax flows, which performed above expectations, accounted for R71.63 billion of this total, whilst personal income tax collections amounted to R111.7-billion, representing a 9% increase on the previous financial year.

There was also an increase in value added tax revenues, which rose to R98.16 billion, some R2.66 billion above the February 2005 estimate, reflecting strong growth in domestic expenditure.

The booming property market also contributed substantially to the record tax take as R7.11 billion in transfer duties were collected.

"A buoyant economy, significant consumer spending and improved collections by Sars, collectively ensured the biggest revenue overrun since Sars was established as a tax administration," announced Mr Gordhan.

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