Sars collected R2bn above tax target

2011-04-01 12:48

The SA Revenue Service (Sars) managed to collect R2 billion more than was expected in the 2010/11 financial year, Finance Minister Pravin Gordhan announced today.

Speaking at a press conference in Pretoria, he said Sars had collected R674.2 billion, which exceeded the target of R672.2 billion.

It was R75.6 billion or 12.6 percent more than collected in the previous fiscal year.

The collection figures indicted signs of economic recovery.

The revenue collection target for the 2011/12 financial year was R741.6 billion.

Gordhan paid tribute to the 15 000 Sars staff members, as well as the taxpaying public.

Referring to spending during 2010/11, he said government had spent R891 billion, which was an underexpenditure of R6 billion from the R897 billion that was budgeted.

The preliminary budget deficit was expected to be 5 percent of GDP.

The more than 1 million jobs lost during the recent recession had limited the growth in revenue from personal income tax.

While Sars personal income tax revenue had grown, it was 0.5 percent below the target.

Gordhan said that apart from job losses, wage increases had been 8.2 percent in 2010/11 compared with 9.3 percent in the previous year.

The collection of value-added tax improved to R184.2 billion from R147.9 billion in the previous year.

Of the R674.2 billion collected, R226.3 billion came from individual taxpayers while companies paid R133.4 billion.

The revenue collected from the fuel levy earned Sars R35 billion, which was 2.2 percent above target, and contributed 5.2 percent to the revenue collected by Sars.

This had increased from four percent in 2008/09 and 4.8 percent in 2009/10.

Sars Commissioner Oupa Magashula said Sars had identified 2 800 people who earned R7 million or more a year or had assets in excess of R75 million.

However, only 360 people were in fact registered with Sars as being in this income category.

He said there were 50 people who owned luxury aircraft valued at more than R20 million, but earned an income of less than R1 million.

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