The four taxes that helped Sars collect R1 trillion
For the first time ever, the South African Revenue Service (Sars) collected more than a R1 trillion in taxes – growth of 8.5 % in total revenue from 2014/15. So just how did the revenue service achieve this?
Read more on Sars' announcement of the R1 trillion collected.
The four main revenue contributors for 2015/16 were personal income tax (PIT), corporate income tax (CIT), value added tax (VAT) and customs and excise duties.
Total collections for PIT were R389.3 billion, R35.3bn (10.0%) higher than the R353.9 billion outcome of the previous financial year. Total CIT collections were R193.5 billion, R6.9 billion (3.7%) higher than the R186.6 billion outcome of the previous financial year. Total VAT collections were R280.8 billion, R19.5 billion (7.4%) higher than the R261.3 billion outcome of the previous financial year. Finally, total customs and excise duties were R151.8 billion, R15.2 billion (11.1%) higher than the R136.7 billion outcome of the previous financial year.
According to Sars, the financial sector contributed 49.7% of total tax revenue collected and is the highest contributor to all major tax types. It is followed by community, social and personal services at 14.9% and the manufacturing sector at 11.2%.