The SA Revenue Service (Sars) says it accepts the gauntlet laid down by Finance Minister Enoch Godongwana to collect more tax, which forms the majority of the country’s revenue.
Sars provides about 90% of all government revenue.
Delivering the Medium-Term Budget Policy Statement (MTBPS) in Parliament, Godongwana increased the revenue collection estimate that Sars must collect to R1.682 trillion from R1.598trl.
Revenue collections as at September 30, 2022, amounted to R784.8 billion, yielding growth of R64.7bn (9%) against prior year collections of R751bn.
“All collections against the previous year showed an upward trend except for the fuel levy, which recorded a contraction of R9.1bn (-20.9%). The year-to-date growth was partially offset by the total refunds paid out, which were R32.5bn (20.9%) higher than the previous year, with VAT refunds R26.2bn (21.0%) higher in the first half of the year,” Sars said.
Sars Commissioner Edward Kieswetter said: “As Sars, we accept the challenge of the revised higher revenue estimate. While the revised revenue estimate is steep, we are committed to act according to what is permissible in law to meet this challenge.”
Sars’s administrative efforts undertaken in the current financial year to drive compliance revenue, included:
- 831797 debt cases and 186 691 final demands being issued and successfully pursued, resulting in R 35.2bn being collected.
- Sars prevented R28bn of impermissible and fraudulent refund claims from being processed.
- The setting up specialised teams that assessed the accuracy of provisional tax payments, resulting in R8.4bn being collected.
- Over 2 675 Customs interventions, resulting in R1.2 bn being collected.
- Sars’ work in the areas of syndicated tax and Customs crimes is gaining traction, resulting in R1.9bn being collected.
- One preservation order was obtained for R150 million.
- The estimated value of assets under preservation orders was about R2.9bn.
- The liquidation and sequestration of assets to the value of about R2.3bn was carried out.
- Sars conducted 478 Illicit trade interventions, resulting in 403 detentions and 252 seizures.
Kieswetter said: “Sars will continue to improve its service to taxpayers and traders by providing clarity and certainty to enable them to meet their legal obligations, and by making it hard and costly for taxpayers and traders who wilfully remain non-compliant.
“The drive to increase the use of technology, especially the use of big data, machine learning and algorithms and the use of third party data, will also continue to be expanded.”
Sars said it was on course to further improve its revenue performance in alignment with its Vision 2020-2025 and Strategic Intent of Voluntary Compliance.
On a more buoyant note, it said it was celebrating its silver jubilee, having been formally established on October 1, 1997 in terms of the South African Revenue Service Act.
“Since its inception 25 years ago, Sars has collected more than R18 trillion for the country’s social and economic development.”
Kieswetter reflected on Sars’ journey to rebuilding it reputation after the department was compromised amid state capture.
He said: “The rebuilding of Sars is evident in improved revenue collection. We are laying a firm foundation for this new environment, which is the synthesis of data-driven insights, enabling information and technology infrastructure and employing skilled staff, which are all indispensable for the success of this modernisation journey.
“We are equally committed to counter criminal and illicit activity. Sars has largely implemented the Nugent Commission recommendations, while outstanding recommendations are currently being aligned with those of the Zondo Commission on state capture,” he said.
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