By Suren Naidoo and Liesel Peyper.
The two-pot withdrawal frenzy continues ahead of the festive season, with the South African Revenue Service (Sars) confirming on Tuesday that just over R35 billion has been taken out from savings pots since the beginning of September.
Sars originally estimated the withdrawals at R49.5 billion, but later issued a statement providing a new figure.
“As of 18 November 2024, 2 153 942 directive applications were received and a total of 1 914 306 directives issued with a total gross value of R35 052 572 876.62, “Sars noted in its updated statement.
“Since its inception, Sars has observed an unprecedented and steady increase in tax directive applications, likely reflecting the economic challenges faced by households, “it said.
“Sars seeks to update the total figures for tax directives received concerning withdrawals from the Savings Withdrawal Benefit under the two-pot system…
“The difference between directive applications and directive issued is accounted for in the following manner:
- 169 509 applications were declined for a myriad of reasons, ranging from systems failures from the fund management entities to wrong identification number, wrong tax number etc.
- 41 523 directives were declined because of insufficient funds, wrong codes etcetera
- 28 525 directives were cancelled by taxpayers who changed their minds.
It seems Absa’s forecast of up to R78 billion in two-pot “savings pot” withdrawals in the first year is likely to happen.
Other banks have been more conservative, expecting between R30 billion and R40 billion in withdrawals.
Meanwhile, Sars said it is pleased to announce that its simulated WhatsApp calculator was used 53 693 times since implementation of the process, in line with the tax agency’s intent for taxpayers to use digital channels.
“The simulated calculator on the Sars website, which forms part of the Sars Online Query System, has been used 850 375 times. Sars has also received 102 839 queries through the voice channel, and 17 627 at branches. The USSD channel received a further 66 048,” it added.