With the 2017 tax paying season in full swing since 1 July, the South African Revenue Service (SARS) has targeted revenue collection of $97.31 billion, the agency has said.“SARS wishes to inform the media that the new revenue target for the 2017/18 financial year is R1.265 trillion (US$97.31 billion),” the state agency said on Thursday.
SARS said it was the Revenue Analysis Working Committee comprising National Treasury, the South African Reserve Bank and SARS – and not the agency — which determined the targeted figure. These three bodies analyse and forecast economic developments before coming up with the target, it added.
SARS has, for the last two years, broken the trillion rand mark. The preliminary outcome for the 2016/17 financial year was R1.144 trillion but the agency ended up collecting R1.265 trillion (13 rand = 1 USD), it noted.
“This extraordinary revenue target has been set in a strained economic environment and will see SARS put in extra effort to continue to bolster the national purse,” SARS said, noting that South Africa is undergoing a recession.
Last year’s tax season saw SARS receive 6.31 million income tax returns. The tax season is the single biggest annual engagement between ordinary citizens and the tax collector, SARS said.