South Africa Heading For Large Revenue Surplus, Says SARS Chief

by Robert Lee, Tax-News.com, London

21 August 2002

Speaking at a press conference on Monday, South African Revenue Service (SARS) Commissioner, Pravin Gordhan revealed that a tax revenue surplus of at least R5 billion is expected for fiscal 2002/03.

Accompanied by Finance Minister, Trevor Manuel, the Inland Revenue chief told reporters of his confidence that the tax authority's collection levels will once again beat budget revenue estimates, revealing that as of Monday - the deadline for tax submissions for the current financial year - SARS was ahead of target.

'We're sitting at a five billion rand surplus, which we hope to sustain at least,' he explained.

Part of the reason for the improved tax collection figures is the revamp undergone by the revenue service, which was aimed at increasing compliance and more efficiently weeding out corporate and individual tax evaders.

The tax authority has already - at the request of the sector's leaders - completed a survey of cash and carry retailers in South Africa, which uncovered more than R100 million in unpaid VAT. A similar exercise within the clothing and taxtiles sector is planned for later in the year.

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