By Lehlohonolo Lehana.
SA Revenue Service (SARS) has announced that it has collected R1.855 trillion for 2024/25 beating the estimated R1.846 trillion set by National Treasury.
Delivering the preliminary results on Tuesday, Sars commissioner Edward Kieswetter said the figure represented 6.6% year-on-year growth, a result achieved despite nominal GDP growth of 4.9%, lower-than-expected wage increases and declining fuel consumption.
Deputy Finance Minister Arshor Sarupen and Governor of the South African Reserve Bank, Lesetja Kganyago, were also present during the announcement.
The 2024-2025 financial year runs from April 1 2024 to March 31 2025.
Personal income tax grew by R81.8 billion, or almost 13%, compared to a year earlier. That was partly due to above-inflation growth in pay-as-you-earn income in the finance and community sectors, and gains from the introduction of a so-called two-pot pension system that allows savers early access to part of their retirement funds without penalties, Kieswetter said.
Corporate income tax rose by R6.5 billion, or 2.1%, from a year earlier, mainly due to the finance sector, which was buoyed by improved profits, Kieswetter said.
He emphasised that the results are due to the diligent work delivered by the revenue services’ 13 000 workers.
“Without the people, we are nothing. We focussed on creating a more conducive environment for our staff during this period. We introduced the notion of employee engagement with a very deliberate and intentional programme to drive that. When we measured [employee engagement] in 2019/20, it was 61.6% and…has gone up to 71%.
“These indicators…don’t speak about money but it speaks about building an institution that can give confidence about the sustainability of giving effect to the mandate and the confidence with which we can project the revenue,” he said.
Kieswetter described the revenue service as a “national treasure” in making sure that South Africa’s democracy is funded.
“Whilst we administer laws, our higher purpose is about enabling government to build a capable state that fosters economic growth and social development, serving the wellbeing of all South Africans.
“Without the important institution of SARS, our democracy would be unfunded. SARS is a national treasure that belongs to all of us and should never be taken for granted,” Kieswetter added.
The revenue authority was allocated an additional R7.5 billion over the next three years in Finance Minister Enoch Godongwana’s budget last month.
It said it plans to use the money to modernise its systems, reduce its debt cash collection and pursue the more than 5 million outstanding returns. It also intends strengthening its efforts to deal with the illicit economy, trade-based money laundering, mispricing and illicit financial flows stemming from illegal or undeclared trade in cigarettes, second-hand gold and crypto currency.
Watch Live in the video below:
Video Courtesy of SARS.