Johannesburg - The South African Revenue Service says it is pleased with its preliminary revenue collection results for the 2022/2023 financial year, which reflected a significant growth trajectory over the past few years.
As of midnight on March 31, 2023, Sars collected a record gross R2 067.8 billion.
“The net collection after payment of R381.1bn in refunds is R1686.7bn. This is the first time since it was formed that Sars collected more than R2 068bn. The amount paid in refunds is also the largest ever paid since its formation,” it said
Sars said the 2023 gross amount represented an increase of 9.7% over the 2022 collection of R1 884.9bn, the refunds paid for 2023 represented an increase of 18.7% over the 2022 amount of R321.1bn, and the 2023 net revenue collected represented year-on-year an increase of 7.9% over the 2022 net collection of R1 563.8bn.
Sars said the net amount of R1 687bn must be seen against the 2021/22 outcome of R1.568 trillion, representing a year-on-year increase of R123bn.
“The achievement of R1.687 trillion represents year-on-year growth of 7.86% against a nominal GDP growth of around 5.8% or a tax buoyancy of 1.38. In February 2023, the minister set an additional challenge of R94bn, and against that new estimate of R1 692bn, Sars achieved 99.7%.”
Sars said that compared to the 2022 revenue outcome, growth was recorded in all tax types. Personal income tax grew by 8.3% to R601.7bn, company income tax by 7.6% to R348bn, VAT by 8.0% to R422.2bn, and customs and other taxes by 27.4% to R73.9bn.
It said compliance revenue resulting from targeted interventions across all segments of taxpayers yielded R227bn in revenue, compared to last year’s R215.4bn.
Commissioner Edward Kieswetter said Sars was pleased with the improved level of compliance and would continue with the work. Importantly, there was an increased focus on all areas of non-compliance, including base erosion and profit shifting as well as aggressive tax avoidance through complicated structuring of tax affairs by high-net-worth individuals and multinational entities.
He expressed his gratitude towards Sars staff and compliant taxpayers and traders for contributing to this significant revenue outcome.
“Sars employees, compliant taxpayers and traders, tax practitioners, citizens, as well as other stakeholders in the tax eco-system, are all nation builders as we work together towards the goal of deepening our democracy and overcoming the challenges of high levels of poverty, unemployment, and inequality.”
Keiswetter said the challenge might seem daunting at times, but Sars had to continue to play this privileged role of building the nation through maximising revenue collection, facilitating legitimate trade, improving voluntary compliance, and rooting out fraud and corruption.
The Star