SARS Rakes In Record Tax Revenues, Pays Out R414 Billion To Taxpayers

The South African Revenue Service (SARS) has unveiled its impressive revenue collection results for the fiscal year 2023/24, marking a historic milestone.

Established in 1997, SARS has solidified its position as a key player in revenue collection over its 30-year tenure, amassing an astounding R21.6 trillion in net tax revenues.

From humble beginnings, tax revenue collections have soared, growing from R114 billion in 1994/95 to monumental heights, boasting a compounded annual growth rate of 9.9% and an average tax-to-GDP ratio of 22.2%.

To illustrate the magnitude of this achievement, SARS’ collections over the last four business days of the fiscal year equated to R114 billion – matching the total collected in 1995 for the entire year.

As of March 2024, SARS recorded a record-breaking gross collection of R2.155 trillion, representing a year-on-year increase of 4.2% against the nominal GDP of 4.9%.

Refunds to taxpayers also hit a pinnacle, reaching R414 billion – the highest ever quantum compared to the previous year’s R381 billion, showcasing an 8.6% growth.

Commissioner Edward Kieswetter expressed satisfaction with the substantial refunds injected into the economy but voiced concerns over refund fraud and abuse, highlighting SARS’ efforts to prevent impermissible outflows.

President Cyril Ramaphosa’s decision to extend Kieswetter’s term by two years underscores the government’s confidence in SARS’ leadership.

The SARS compliance programme contributed significantly, totaling R293.7 billion, leveraging data, artificial intelligence, and machine learning algorithms to combat criminality and non-compliance effectively.

As SARS continues to set new benchmarks in revenue collection, taxpayers are urged to stay informed and compliant, ensuring a robust and sustainable fiscal environment for South Africa’s economic growth.

For the complete SARS report, click HERE.