Data from the revenue services revealed that South Africa’s tax collection for the fiscal year that ended on March 31 was 1.686 trillion rand ($94 billion), of the government’s expectation of 1.692 trillion rand in the 2023 budget.
Although mining output fell during the last year, the South African Revenue Service (SARS) reported that rising commodity prices had a major positive impact on tax collections. Personal income tax contributed 35.7% of total revenue collection, followed by value-added tax (25%), and corporate income tax (20.6%). With a 33.9% contribution, the finance industry was by far the largest provider to tax collections.
According to SARS, continuing power outages have had a “debilitating” impact on the economy and tax collection. The South African Reserve Bank said that it expected the domestic economy to grow by just 0.2% this year, a rate which the revenue services said will make it difficult to achieve collection targets for the year ahead.
The Treasury is targeting revenue collection of 1.787 trillion rand for the fiscal year to the end of next March.