SARS exceeds expectations on tax collections

The SA Revenue Service (SARS) is to focus on South Africa's richest

Since the announcement by the South African Revenue Service (SARS), tax collection has exceeded expectations, many are hoping for more tax cuts next year.

Pravin Gordhan, the SARS commissioner, is relieved. His tax collectors brought in 32% more than they thought they would this year. They say it is all down to efficiency. Tax cuts, low interest rates and slowing inflation put more money in people's pockets. The only threat could be the high oil prices.

Now the ball is in the treasury's court. Some feel that the next logical step will be more company tax reductions which will boost investment and create jobs. There is also education, health care and housing. "Usually when tax collection is good the tax payer feels the benefits. The government normally cuts taxes. Tax collection may be stronger than ever but there are no guarantees," said Gordhan.

In the last budget Trevor Manuel, the finance minister, warned people to expect few tax reductions in future. Tax payers will find who out will get the lion's share next month.