SARS Tax Revenue Hits Record High, Gross Tax Collection Reaches R2 Trillion in 2022/2

The South African Revenue Service (SARS) has achieved a record-breaking tax revenue collection in the 2021/22 financial year, with gross collections amounting to R1.884.9 trillion, up from R1.540.5 trillion in the previous year[3][1]. Although the provided web search results do not mention reaching R2 trillion in 2022/23, SARS has implemented plans to increase tax collection in South Africa[10].

The 2021/22 gross tax revenue collection was offset by refunds of R321.1 billion, resulting in net collections of R1.563.8 billion, a surplus of R314.0 billion (25.1%) compared to the 2020/21 financial year[1]. Of the total revenue collected, personal income tax (PIT) contributed R555.8 billion (35.5%), value-added tax (VAT) R390.7 billion (25.0%), corporate income tax (CIT) R323.6 billion (20.7%), and customs duties R58 billion (3.7%)[5].

SARS Commissioner Edward Kieswetter announced that the organization had paid out its highest-ever amount in tax refunds in 25 years, representing an estimated 5.1% of the gross domestic product[6]. The record-breaking revenue collection is attributed to the implementation of strategies aimed at increasing tax collection in South Africa[10].

As SARS continues to focus on enhancing tax compliance and revenue collection, it is possible that the gross tax revenue collection could reach R2 trillion in the 2022/23 financial year, though this figure has not been confirmed in the provided search results.

Leave a Reply

Your email address will not be published. Required fields are marked *