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SA collects R1.25trn in taxes in 2020/21 – Sars

Around 12% less than the government’s original target of R1.425 trillion.
Image: Waldo Swiegers / Bloomberg

South Africa collected R1.25 trillion ($85 billion) in tax revenue in the financial year ended March 2021, around 12% less than the government’s original target of R1.425 trillion, the revenue service said on Thursday.

The economy, in recession even before the coronavirus struck, shrank by 7% in 2020, while unemployment also soared, leading to a record budget deficit as the government was starved of revenue while forced to spend more to fight the virus.

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The initial 2020/21 target of R1.425 trillion was set by the National Treasury before the coronavirus pandemic struck in March last year.

Treasury revised the estimate down to R1.112 trillion in October, but then upped it to R1.212 trillion in the February 2021 budget.

The South African Revenue Service (Sars) said improved economic activity, higher collections company tax, especially mining firms, and greater tax compliance, had led to better collection than the February target.

Sars Commissioner Edward Kieswatter said the agency would focus on stricter compliance, especially by high net-worth individuals, to close the gap.

“Sars is aware of increasing number of south Africans who have financial assets offshore … they have more than R400 billion in offshore accounts. We’ve identified around 10% of that, but we believe there’s still a lot to be explained,” Kieswatter told a news conference.

Kieswatter said the bans on the sale of alcohol and tobacco during the strictest period of the coronavirus lockdown cost the country around R14 billion in lost excise taxes.

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How much of tax payers hard earned money is wasted?

Well, I know what I did was to declare a dividend, pay myself a bonus, upped my employees’ salaries, paid them bonusses, spend more on entertainment, etc, etc. What I’m not doing is to up my capex and I’m not expanding my business. This meant that I paid more tax this round, but I’ll pay less down the road. The money I took out of my business all went overseas. Not a cent remained in SA, so SARS can pat themselves on the back for their collection of taxes (that must seem better than what they thought), but, at least from my business, the next round will be way down.

Therefore the economy probably declined more like 12% and not the 7% stated.

Collected? No robbed by the ANC gangster regime!

Money goes to basic income grants, bankrupt SOEs, overpaid government unproductive and ineffective employees, criminal MPs, captured judges, bailouts for SAA, Eskom etc…in short close to nothing returned to the people who pay it.

Mr Kieswetter should look at himself in utter shame for what he is

End of comments.

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