The South African Revenue Service (Sars) is targeting a total tax revenue cake of R372,8-billion in the 2005/06 financial year, with corporate tax representing a slightly lower figure than the provincial outcome for the 2004/05 financial year, according to figures provided on Wednesday to Parliament.
Sars commissioner Pravin Gordhan told the National Assembly finance portfolio committee that the personal income tax cake is expected to rise by 5,6% to R117,6-billion in the current year, up from R111,3-billion in 2004/05.
Last week, Gordhan and Minister of Finance Trevor Manuel reported a provisional outcome of R354,9-billion in the 2004/05 financial year — up by R10-billion on the February 2005 target of R345,3-billion.
Corporate tax contributed R71,1-billion in 2004/05 — up from an expected R66,4-billion. However, it is projected that corporate tax will contribute R69,6-billion in the current year — down about 3,5%. This follows the lowering of the corporate rate from 30% to 29% in Manuel’s February Budget.
All other tax revenues are expected to rise except for customs duties, which are expected to fall by 1,1% with R13-billion raised — down from R13,15-billion in 2004/05. The average rise in revenue is expected to be in the region of 5%, up from 2004/05.
Value-added tax is expected to rise from R98,2-billion in revenue in 2004/05 to R106-billion in 2005/06 — up nearly 8%. The highest rise in tax revenue in percentage terms is expected to be for secondary tax on companies — by 16,6%, with revenue reaching R8,7-billion in 2005/06, from R7,46-billion in 2004/05.
Fuel levy revenue is expected to rise by 10,2% to R20,7-billion, from R18,7-billion.
Total tax revenue in cash is expected to pass through the R400-billion mark by the year 2006/07 to R414,2-billion.
In 2005/06, tax on retirement funds is expected to raise R4,9-billion, up 11,8% from the R4,38-billion raised in 2004/05. Transfer duties are expected to be up by 12,4% to R8-billion from just more than R7-billion.
Revenue collected as a percentage of gross domestic product is expected to be 24,4% in 2005/06. — I-Net Bridge