Site icon News Central TV | Latest Breaking News Across Africa, Daily News in Nigeria, South Africa, Ghana, Kenya and Egypt Today.

South African Revenue Service Collects Record R2.2 Trillion in Taxes

Edward-Kieswetter South African Revenue Service (News Central TV)

The South African Revenue Service (SARS) Commissioner Edward Kieswetter announced on Tuesday that the tax agency has collected a record gross amount of R2.155 trillion as of the end of March 2024.

This indicates a year-on-year growth of 4.2% against the nominal gross domestic product (GDP) of 4.9%.

Kieswetter added that SARS paid refunds of R414billion to taxpayers, the highest-ever volume in refunds compared to R381billion the year before. This indicates an 8.6% growth.

This puts the collected net amount to R1.741 trillion, almost R10 billion more than the revised estimate and R54billion more than last year’s R1.687 trillion.

VAT refunds grew by 7.5% in comparison with the year before, with R120billion and R37billion of the total refund benefit directed to SMMEs and individuals.  

However, Kieswetter expressed concerns over potential fraud as SARS was able to avert the outflow of R101billion of impermissible refunds in the period under review.

“While we are pleased the R414bn returned into the hands of taxpayers is good for the economy, I remain concerned about the refund fraud and abuse,” he said.

Total tax revenue increased by R54.2bn compared to the 2022/23 fiscal year, driven by personal income taxes of R49.5bn on the back of higher-than-estimated compensation of employees and higher domestic VAT.

Net personal income tax grew by R49.5bn or 8.2% in 2023/24 as employment improved year-on-year and average wage settlement rates improved from an annual average of 6.0% in 2022 to 6.3% in 2023.

Meanwhile, Kieswetter said SARS has commenced revoking the licences of more than 50 tax practitioners as a result of general non-compliance, adding that delinquency among tax practitioners threw spanners in the works for the agency.

Exit mobile version