Earlier this week the South African Revenue Services (SARS), announced that it has collected R1.28 trillion during the collection season of 2018/19 financial year.
According to SA News, the acting commissioner said during the financial year that the gross collection grew by 8.6 percent, while refunds grew by 22.7 percent.
This followed the announcement made in the Medium Term Budget Policy Statement (MTBPS) by Finance Minister Tito Mboweni, that the Value-Added Tax (VAT) refund envelope would increase to allow the release of VAT refunds from the fiscus back into the economy.
“The gross amount collected is R1 575.4 billion which was offset by refunds of R287.8 billion, resulting in net collections of R1 287.6 billion. The net revenue outcome of R1 287.6 billion represents a growth of R71.2 billion (5.8 percent) compared to the 2017/18 financial year,” said acting collector and commissioner, Mark Kingon.
SARS added that the main sources of revenue that contributed to the R1.2 trillion collected were Personal Income Tax (PIT), which contributed R493.8 billion 38.3 percent, VAT contributed R324.6 billion 25.2 percent, Company Income Tax (CIT) contributed R214.7 billion 16.7 percent and Customs duties contributed R55.2 billion 4.3 percent.
“During the reporting period, global economic growth weakened to 3.7 percent for 2018 and a projected growth of 3.5 percent in 2019. Growth has been hamstrung by US-China trade tensions and tariff increases in 2018, the introduction of new automobile fuel emission standards in Germany, contraction in domestic demand in Italy due to concerns over sovereign and financial risks, as well as weak financial market sentiment and growth in Turkey,” added Kingon.
SARS stated that there was a strong growth in import taxes of 14.0 percent for the first three fiscal quarters, after which transactional data and merchandise imports did not meet expectations during some months of the final fiscal quarter.
Payments that are part of the 13th deferment statement exceeded all expectations which resulted in the overall outcome for Customs growing at 13.9 percent which is marginally above the required growth rate, the revenue service adds.
While the 2018/19 financial year saw a number of increases for SARS, the revenue service did fall short of its goal for the period. More specifically they had a shortfall of R14.6 billion from the target of R1.3 trillion budget estimate.