Cape Town — The South African Revenue Service (SARS) has over the past five years increased the total tax revenue collection from R1 216.5 billion in 2017/18 to R1 563.8 billion in 2021/22, representing a compound annual growth rate (CAGR) of 6.5%.
“This is significantly lower than the CAGR of 8.4% attained in the previous five-year period from 2012/13 to 2017/18,” National Treasury and the South African Revenue Service (SARS) said in a joint statement.
The 2022 edition of the Tax Statistics provides an overview of tax revenue collections and tax return information for the 2018 to 2022 tax years, as well as the 2017/18 to 2021/22 fiscal years.
“The economic recovery from the pandemic differs from previous negative shocks to the economy. After the 2008/09 global financial crisis, it was several years before tax revenue collections recovered to pre-crisis levels as a proportion of income and consumption.
ALSO READ | Jet fuel shortage ‘improves at Cape Town International Airport’
“Due to the strong economic recovery from the pandemic, tax revenue increased by R314.1 billion to R1 563.8 billion for the year ending 31 March 2022,” Treasury and SARS said.
The document revealed that Personal Income Tax (PIT), at 35.5%, Value-added Tax (VAT), at 25.0% and Corporate Income Tax (CIT), at 20.7%, in aggregate remain the largest sources of tax revenue and comprise 81.2% of total tax revenue collections.
It also stated that the tax-to-GDP ratio moderated from 23.8% in 2019/20 to 22.3% in 2020/21, followed by an increase to 24.9% in the year under review.
Among the key points in the 2022 edition were that the Personal Income Tax (PIT) register had grown on an annual basis by 4.1% to 23.9 million individuals, by 31 March 2021.
“The number of individuals expected to submit income tax returns was 7.1 million for the 2018 tax year. This count decreased to 6.8 million for 2020 and then to 6.4 million for 2021, due to the increase in the threshold for submission of returns, over the past few years,” the statement read.
Follow African Insider on Facebook, Twitter and Instagram
Picture: Pixabay
For more African news, visit Africaninsider.com
