SARS beats target after Treasury’s revision
Announcement sets tone for relationship with new minister
The South African Revenue Service (SARS) met its target for 2016, vindicating the Treasury’s R30bn revision and setting the tone for its relationship with newly appointed Finance Minister Malusi Gigaba, who was cheered on by SARS staff. SARS commissioner Tom Moyane said SARS had collected R1.144-trillion, aligned with the Treasury’s revision, exceeding the mark by R300,000. Former finance minister Pravin Gordhan announced at the 2016 Budget that R1.175-trillion in revenue collections was required. At the time of the medium-term budget speech, the Treasury and the Reserve Bank had revised this down to R1.152-trillion. It was further revised down to R1.144-trillion during the 2017 budget speech. Moyane said the significant downward revision had nothing to do with SARS’s ability to collect revenue. A contraction in imports had pulled customs duties down by R6.5bn resulting in the downward revision. VAT was also pulled down by R11.3bn, while personal income tax underperformed by R15.2bn...
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