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.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.