SOUTH AFRICA’S TAX REVENUE RISE 8.5 PCT TO 1.07 TRILLION RAND
The South African Revenue Service (SARS) and the National Treasury have released the 2015/2016 tax statistics which show that tax revenue collection grew by 8.5 per cent to reach 1.07 trillion Rand (about 76.38 billion US dollars).
“Tax revenue collection for 2015/16 amounted to 1,070 billion Rand, growing by 83.7 billion Rand (8.5 per cent) relative to 2014/15,” said the Treasury and SARS in a joint statement here Tuesday.
According to the statistics revenue, growth was mainly supported by personal income tax which grew by 35.4 billion Rand. The cost of revenue collection ratio decreased from 0.97 per cent in 2014/15 to 0.96 per cent, well within the international benchmark of 1.0 per cent.
The 2016 tax statistics provide an overview of tax revenue collection and tax return information for the 2011/12 to 2015/16 fiscal years, and the 2012 to 2015 tax years respectively.
The statistics present comprehensive tax revenue data to complement and contextualise economic and demographic data provided by other statistical agencies. The tax statistics also provide valuable insights into socio-economic trends.
The tax statistics also showed that VAT (value added tax) remained the second largest contributor to total tax revenue for 2015/16, totalling 281.1 billion Rand.
At 18.1 per cent of total tax revenues, company income tax (CIT) was the third largest contributor to total tax revenue in 2015/16. Its contribution has decreased significantly, however, from a peak of 26.7 per cent achieved in 2008/09.
About 25 per cent of the 702,395 companies assessed for the 2015 tax year had positive taxable income.
Meanwhile, Import VAT and Customs Duties, South Africa’s two biggest trade-related taxes, jointly contributed 197 billion Rand to total tax revenue collected in 2015/16. This is in line with contributions in the years following the global financial crisis, with the exception of a 19.5 per cent peak in 2013/14.
Source: NAM NEWS NETWORK