The South African Revenue Service (Sars) has collected R1-billion more than the revised budget of R417-billion for the past financial year, Minister of Finance Trevor Manuel said on Monday.
Sars collected R418,116-billion, which is not only R1-billion over the revised budget but also R45,3-billion more than the original estimate of R372,8-billion.
”The preliminary revenue result we announced today gives further credence and justification to the mood of optimism and confidence in the country and our ability to fund our ambition for a better life for all South Africans,” Manuel said.
On Friday, the last day of the financial year, the revenue service collected a massive R16-billion to shoot past the target. ”That speaks of an organisation that functions, and a system that works,” said Manuel.
He said the initial figure was based on macroeconomic assumptions that changed during the year, with the economy doing much better that the assumption predicted.
”One of the consequential benefits was an acceleration of commercial activity on the supply of goods and services on the back of an increased consumption demand. This resulted in an increase in gross domestic product, imports, gross operating surpluses and gross domestic expenditure,” Manuel said.
Corporate income tax performed much better than expected, with R88,79-billion being collected. Secondary tax on companies delivered R12,5-billion, which was R414-million more than the estimate of R11,85-billion.
Transfer duties were below estimates, only accounting for R8,51-billion of an expected R8,7-billion. Excise duties and ad valorem delivered R15,72-billion of revenue and the fuel levy R20,9-billion.
Marketable securities tax came in above target with R1,97-billion, being R173-million more than expected, and customs duties came in R192-million under target, with R81,41-billion being collected.
Personal income tax also came in below target with R125,4-billion of the estimated R126,46-billion being collected.
”This is probably due to companies paying out lower bonuses and lower-than-estimated wage increases,” Sars commissioner Pravin Gordhan said.
Manuel said he believes Sars will in future probably continue collecting more than is estimated. ”We still do not know where the limits are,” he said.
Gordhan said the service is still busy improving its collection service. ”We are not there yet,” he said.
”South Africa and its people are now reaping the rewards of an upbeat economy, improved tax compliance and civic responsibility and a steadily improving tax and customs administration,” Manuel said. — Sapa