SARS sets new tax record
01 Apr 2008
Pretoria — The SA Revenue Service (SARS) exceeded its targeted tax revenue by collecting R571,8 billion in the 2007/8 financial year, which ended on Monday, Finance Minister Trevor Manuel announced yesterday.

"It’s a very, very significant achievement," Manuel said via satellite link from Ethiopia, where he is attending a meeting of the UN Economic Commission for Africa. "We set SARS a revised target of R571 billion. By midnight last night [Monday] they had collected R571,8 billion.

"This figure is R15,2 billion over the figure that we set for the fiscal year and announced in the Budget in February of 2007 … It’s also R744 million above the figure that we announced … [February 20] in the Budget this year."

The revenue collected was "clearly something we want to announce with a great deal of pride", said Manuel.

"We want to do so, because around the world, revenue authorities are struggling. They’re struggling because the global economy is in a serious downturn.

"South Africa is not unaffected. We have revised down our own growth forecast for this year ..."

On the unaudited expenditure side, Manuel said that although in February it was thought there would be underspending of some R5 billion, this will now be increased to R5,5 billion.

In addition, the departmental revenues increased from the previous estimates by R1,4 billion to R2,8 billion.

"This means that we can today indicate that there is an enlarged fiscal surplus of some 0,9% of GDP."

Manuel expressed "heartfelt appreciation to the taxpaying population in South Africa" and SARS staff for going "the extra mile".

A "quick scan" of the contribution of the various sectors to the tax take showed that personal income tax accounted for 29,6%, corporate income tax 25%, value-added tax 26,2%, customs 4,7% and the fuel levy 4,1%.

"So it’s very balanced."

Looking at just "one layer" of the corporate income tax, Manuel said that for the first time, the manufacturing sector was the largest single contributor, at 22%.

"It’s a very, very happy story, and I think as South Africans we must feel proud of our achievements over the past fiscal year."

Commenting on the figures, SARS said "strong growth" in personal income tax, to R169,9 billion was driven by 11,7% growth in remunerations and 2,4% in employment at the end of September last year.

"I am sitting in Addis Ababa feeling like the cat who’s had all the cream, and the reason for this is that we in South Africa are now the envy of every other country represented here," said Manuel. "There’s no other country in the world that within 12 hours of closing of the fiscal year will be in a position to give both the revenue and the expenditure numbers."