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SARS collects over R1.5 trillion for 2021/22 financial year

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The South African Revenue Service (SARS) has announced that it collected just over R1.5 trillion in taxes and duties for the 2021/22 financial year. This 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.

Addressing a media briefing in Pretoria, SARS Commissioner Edward Kieswetter says the administrative improvements undertaken by the revenue collector have significantly improved revenue collection

SARS briefing:

“Significant contributors in this regard Personal Income Tax (PIT) was net up by R6.3 billion or 13% to R555.8 billion (35.5%), Company Income Tax (CIT), net up by R119 billion or 58% to contributed R323.6 billion, Value-Added Tax (VAT) up by R59 billion or 18% to R390.7 billion,” says Kieswetter.

Administrative improvements

In early March, Kieswetter said they had to make a number of administrative improvements to boost revenue collections for the 2022 budget.

He said those measures, coupled with the higher commodity price cycle, helped SARS to deliver R187-billion extra revenue collection.

Kieswetter was addressing a post-budget webinar hosted by Deloitte South Africa.

“This year to date, we’ve had to work through and resolved 2,4 million cases of debt, not all of that was friendly, we’ve had to appoint a few sheriffs, we’ve had to issue five and a half civil judgments, just over 300 000 to third party collection agencies, issued 24 000 letters of demand, those are administrative actions if not done, would mean that revenue stays out of the fiscus. And the longer, those of you who know, there’s an inverse correlation between the age of debt and its collectability,” said Kieswetter.

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