South Africa’s tax collection modestly beat estimates, boosted by stronger contributions from companies, personal income receipts and value-added tax, preliminary data show.
The South African Revenue Service (Sars) collected R2.010 trillion on a net basis in the fiscal year through March, Commissioner Edward Kieswetter told reporters in Pretoria, the capital, on Wednesday.
The amount collected was 8.4% higher than the previous financial year and slightly better than the National Treasury’s estimate of R2.007-trillion in its budget review last month.
Surpassing that forecast will help support Treasury projections that government debt peaked as a share of gross domestic product in the 2025-26 fiscal year.
Tax collection from corporates grew 9.9% to R355.5-billion, while revenue from domestic VAT rose 7.6% to R604-billion.
Pay As You Earn income tax advanced 8.5% to R767-billion.
“These results have been achieved despite the challenges of a sluggish economy, geopolitical tensions, global supply-chain disruptions, and the proliferation of the illicit economy,” Sars said in a statement.
The revenue agency is working with law-enforcement agencies to shut down illicit trading networks in the country that it estimates costs the state more than R100-billion in lost revenue every year, Kieswetter said.
BLOOMBERG