HILARY JOFFE: Sars’ rising tax collection won’t make up for bad policy
By fiscal year close on March 31 the tax authority had collected almost R9bn more than the March 12 budget’s revised estimates
Each year, soon after the fiscal year closes at midnight on March 31, the SA Revenue Service (Sars) goes public with final numbers on the tax take for the year. This year’s presentation came amid this week’s budget drama. And since one argument against the controversial VAT hike was that it wouldn’t be needed if we just gave Sars more money to improve its ability to close the “tax gap”, it raised some important questions.
The numbers were a good story, and commissioner Edward Kieswetter didn’t hold back in the telling. By the stroke of midnight on Sunday the tax authority had collected almost R9bn more than the March 12 budget’s revised estimates, which themselves were revised up slightly from the failed February 19 budget and October’s medium-term budget. That means the final outcome for the 2024/25 fiscal year is just R8bn short of the estimate finance minister Enoch Godongwana pencilled into his February budget just more than a year ago, a contrast to October when a R22bn ...
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.