BUSINESS MAVERICK: SARS Covid Collection: Taxman collects R38bn more than Budget forecast

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The South African Revenue Service collected just more than R1.25-trillion for the financial year that ended at midnight on Wednesday, 31 March, according to its preliminary estimates. That is 7.8% less than it collected in the 2019/20 financial year, but it is R38bn more than the Budget forecast.

“A higher-than-expected rebound in economic activities after the easing of economic lockdown measures resulted in better-than-expected tax revenue collections,” SARS said in a statement. It further noted its own efforts to improve compliance as it rebuilds from the gutting of the Zuma era.“Corporate income tax collections recovered in the last quarter of 2020, driven mainly by higher international commodity prices,” SARS said. “The overall contributions from the mining and quarrying sector… R41.

For the 2021/22 financial year which kicked off on 1 April, SARS estimates it will collect R1.365 trillion, which would be growth of almost R115-billion or 9.2%. This will hinge on the strength or weakness of the economic rebound from 2020’s gross domestic product contraction of 7%.

 

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