The relaunch of the Large Business Unit at the South African Revenue Service (SARS) two years ago has added a significant boost to revenue collections amounting to half-a-trillion rand since its re-establishment.
The unit collects taxes from JSE listed companies, mining companies, multinationals and high net worth individuals.
SARS says revenue collections have been boosted by the strong economic recovery which has been elevated by higher commodity prices.
The revenue service has reported just over R1.5 trillion in tax collections for the 2021/2022 financial year.
25 years of Revenue pic.twitter.com/sFM9f0D8KC
— SA Revenue Service (@sarstax) April 1, 2022
Commissioner Edward Kieswetter says compliance among taxpayers improved.
“We have established the large business and international segment. As we reported before and I pause to reflect on what we’ve seen since its relaunch, we’ve had a year on year increase of R110,6 billion in revenue from this segment rebounding from -3% contraction in the previous year…and overall compliance increased by 3% to 91.3%. We have achieved half a trillion rand just from this segment. That’s almost a third of our total revenue just from this segment.”
R1.5 trillion in tax collections
The over R1.5 trillion in tax collections for the current financial year resulted in R314 billion in additional revenue, compared to what was projected in the previous financial year.
The main source of revenue came from personal income tax, VAT, company tax and customs duties.
Mains sources of revenue pic.twitter.com/lAVKHMKU2u
— SA Revenue Service (@sarstax) April 1, 2022
Kieswetter says administrative improvements undertaken by the revenue collector have significantly improved revenue collection.
SARS media briefing in the video below:
Improvements in revenue collections
Meanwhile, government says SARS must be capacitated and duly resourced to ensure continuous improvement in revenue collections.
SARS says as part of its administrative reform, it has put in measures to clamp down on illicit trade and other tax crimes with the help of some of the country’s law enforcement agencies.
“Tax legitimacy and perceptions of fairness in the distribution of tax burden are crucial to the willingness of citizens to pay taxes. Therefore, it is of utmost importance to adhere to the principles of a good tax system namely efficiency, equity, simplicity, transparency certainty, as well as ensuring a tax system that responds to the business cycle of the economy. “
