SARS undershoots revenue target by R0.7bn

Cape Town - The taxman collected R1.216trn in revenue for the 2017/18 financial year - R0.7bn or 0.06% lower than the R1.217trn target set by National Treasury.

Finance Minister Nhlanhla Nene made the announcement at a briefing on the preliminary results at South African Revenue Service (SARS) headquarters in Pretoria on Tuesday morning. Acting commissioner Mark Kingon also delivered an address.

According to SARS, R1.451trn was collected and refunds amounted to R234.3bn, bringing the net figure to R1.216trn. Revenue represents growth of 6.3% or R72.4bn.

“Well done to SARS and the people of South Africa who made this possible,” Nene said of the results.  

“This revenue injection represents money that comes from ordinary, hard-working South Africans and demonstrates our resilience as a nation to overcome obstacles and challenges, and our commitment to protect and deepen our democracy.”

Nene explained that revenue collection is driven by the state of the economy, fiscal policy and administrative efficiency. The performance of any tax administration is driven by consumer confidence, tax morality and the credibility of the tax administration, he said.

Between December 2017 and February 2018 monthly revenue growth rates accelerated between 9.5% and 15.5%.

The strengthening of the growth rate is attributed to an improvement in business confidence to levels last seen in 2015, resulting in improved profit outlook and hence provisional payments, said Nene.

“The stronger currency towards the latter part of 2017 assisted companies with imports, which benefitted our trade taxes,” he added.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
16.63
(+0.50)
ZAR/GBP
21.45
(+0.67)
ZAR/EUR
19.54
(+0.31)
ZAR/AUD
11.95
(+0.20)
ZAR/JPY
0.16
(+0.58)
Gold
1907.40
(+1.09)
Silver
23.96
(+2.68)
Platinum
893.00
(+0.44)
Brent Crude
42.12
(+1.78)
Palladium
2327.50
(+1.04)
All Share
54446.78
(+0.34)
Top 40
50159.14
(+0.23)
Financial 15
10158.72
(+0.86)
Industrial 25
73766.43
(+0.79)
Resource 10
53032.08
(-0.66)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1402 votes
It depends on how the funds are used.
73% - 9090 votes
No. We should have gotten the loan elsewhere.
16% - 1998 votes
Vote