Kieswetter says a higher-than-expected rebound in economic activities after the easing of lockdown has resulted in better-than-expected tax revenue collections.
The various alcohol bans, as well as the tobacco ban at the beginning of lockdown, saw Sars loose R14 billion in revenue, while finding that South Africans have more than R400 billion in offshore accounts.
“The lifestyle of wealthy people says more about their true income than what they declare,” Kieswetter said.
Sars collected a gross amount of R1 541.1 billion for the period ending 31 March, 2021. This amount was offset by refunds of R290.9 billion, resulting in net collections of R 1 250.2 billion.
This is higher than the revised estimate in budget 2021 of R1 212.2 billion that represented a contraction of –R105.6 billion (-7.8%), compared to the previous financial year.
Kieswetter said the 2021 budget printed estimate for 20201-22 was set at R1 365.1 billion, representing growth of 12.6% against the 2021 budget revised estimate (RE) for 2020-21 of R1 212.2 billion.
These are preliminary results that must still go through detailed financial reconciliation and a final audit. This estimate is underpinned by main assumptions that include nominal growth in gross domestic product (GDP) of 8.8%, with a tax-to-GDP extraction ratio of 25.5%.
Compared to the preliminary 2020-21 collections of R1 250.2 billion, the 2021-22 estimate of R1 365.1 billion represents growth of R114.9 billion (9.2%).
Tax administrative actions during the period under review saw Sars collect R158.5 billion, with close to R94.1 billion in additional cash collections and the remaining R64.3 billion non-cash collections.
Kieswetter said a higher-than-expected rebound in economic activities after the easing of lockdown resulted in better-than-expected tax revenue collections, with corporate collections recovering in the last quarter of last year, driven mainly by higher international commodity prices.
“Pay-as-you-earn collections continue to be challenged by sluggish employment and wage growth, as well as lower bonus payments. Despite seeing a contraction in domestic VAT liabilities during the first fiscal quarter, early signs of recovery were noted from July.”
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