SARS collects R1.74 trillion in revenue for 2023/24 financial year
The revenue service has seen a 3.2% increase in tax collection over the previous year.
Outside the South African Revenue Service's Tshwane headquarters. Picture: X/@CityTshwane
CAPE TOWN - The South African Revenue Service (SARS) has collected over R1.74 trillion in revenue for the 2023/24 financial year.
This is despite a sluggish economy, high unemployment and a freeze on the fuel levy.
But SARS Commissioner Edward Kieswetter says many potential taxpayers are still slipping through the net and not paying tax.
Presenting SARS’ annual report in parliament on Tuesday, Kieswetter said chronic underfunding of the entity would hamper its efforts to collect what’s due to the State.
The revenue service has seen a 3.2% increase in tax collection over the previous year.
However, Kieswetter says the R9.5 billion surplus could have been more.
ALSO READ: 2024 Tax season is here: This is what you need to know…
"The R1.741 trillion that we collected does not speak to the true amount that is due to the fiscus and we would like to make a strong message that unless we treat SARS as in investment centre and not as a cost centre, this money will remain under collected. Our fiscal integrity will continue to struggle, and we will end up having to borrow money that we already have."
But SARS didn’t just take money, it also paid out over R413 billion in refunds.
Kieswetter said rather than targeting a section of the population to hike taxes, it would be preferable to broaden the tax base so everyone can pay less.
However, SARS's funding is on a downward trend, at less than the international norm for developing countries of 1% cost to revenue.