SARS’s R500m revenue surplus will all be eaten by VAT refunds
‘The saving in VAT refunds was depleted when the December 2016 backlog was cleared largely in January 2017, thus posing a downside risk to overall revenue collections’
Revenue collection by end-December of R818.8bn represented a surplus of R500m on the target set out in the medium-term budget policy statement — but this surplus would be consumed by the payment of backlog tax refunds, the South African Revenue Service (SARS) told Parliament’s finance committee on Tuesday. The tax authority, led by commissioner Tom Moyane, briefed MPs on its performance for the three months to end-December. The surplus was expected to become a deficit due to the refunds, the tax authority said in a written submission to the committee. "The saving in VAT refunds was depleted when the December 2016 backlog was cleared largely in January 2017, thus posing a downside risk to overall revenue collections," SARS said. Total VAT refunds amounted to R133.4bn by end-December. SARS warned that import taxes posed the largest significant risk to revenue collections due to subdued levels of growth. It noted that customs duties by end-December had generated R32.8bn compared with t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.