SARS undershoots Treasury's tax collection target
Revenue of R1.216-trillion was collected in the 2017-18 fiscal year — lower than the most recent estimate of R1.217-trillion, and much lower than the 2017 target
The South African Revenue Service (SARS) has undershot Treasury’s revised revenue target for 2017-18. SARS collected R1.216-trillion for 2017-18, Finance Minister Nhlanhla Nene said at the announcement of the preliminary revenue results, in Pretoria on Tuesday. That was R700m, or 0.06%, short of the revised estimate announced in the February 2018 budget, but still represents growth of R72.4bn or 6.3% from 2016-17. Malusi Gigaba, who was finance minister at the time, announced in the budget in February 2018 that tax collection of R1.217-trillion was expected — up slightly from the previous estimate of R1.214-trillion but still much lower than the ambitious R1.265-trillion target announced in 2017. Treasury still expects a R48.2bn revenue shortfall for 2017-18, which it says reflects weak growth, administrative challenges at SARS, and increased tax avoidance. Under suspended commissioner Tom Moyane, SARS has in recent years reported revenue shortfalls on a scale not seen since the 20...
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