Here is how much tax revenue Sars has collected since 1997

The vast wealth contributed by tax payers since the late nineties has been commended by the highest office in the land.

President Cyril Ramaphosa addressed South African Revenue Service (Sars) officials on Thursday as he toured the tax collector’s head office.

The President celebrated the high esteem in which the national accountants are regarded, reiterating the pivotal role they play in ensuring a functioning state.

SA tax collected since 1997

Sars rolled out the red carpet for Ramaphosa at its Pretoria command centre, allowing the president to scrutinise the various business units.

Ramaphosa said Sars was a “creation of our democracy” that had sustained the country’s foundation for three decades.

He explained that South Africa was on track to achieve its third consecutive primary budget surplus, which would aid the achievement of government objectives.

Considering Sars’ tax-collecting prowess to be a “key consideration for investors looking to bring their business to our country”, the president said every rand collected propelled the country forward.

“This organisation stands as a shining example of a global tax collection best practise.  

“Since Sars was established in 1997 it has collected more than R23 trillion in tax revenue that has been used for social and economic development,” said Ramaphosa.

Current administration key

The president stated that public trust in the institution had risen from 48% in 2020 to 75% currently, largely due to the work of Commissioner Edward Kieswetter.

He said that mismanagement, corruption, and political meddling had plagued Sars prior to Kieswetter’s appointment in May 2019.

“Your leadership has been vital to restoring the credibility and integrity of this critical South African institution.

“Having largely achieved a turnaround, Sars has positioned itself to be at the forefront of efficiency and service excellence,’ said Ramaphosa.

Lastly, Ramaphosa thanked the private sector and associated institutions for their contributions to the smooth tax collection process.  

“We acknowledge the role played by the financial institutions and data providers such as banks, insurers and fund administrators.

“We need to have the fiscal space to drive inclusive economic growth and job creation, reduce poverty and tackle the high cost of living, and build a capable, ethical developmental state,” Ramaphosa concluded.

Mismanagement and corruption

For the previous tax season, Sars recorded a gross collection of R1.15 billion, including R371 billion from personal income tax and R164.5 billion from corporate income tax.

Dividend tax from corporate shareholders amounted to R22.3 billion, VAT raised R292.7 billion and the R44.7 billion was raised by the general fuel levy.

While difficult to fully quantify, the losses incurred through government mismanagement and corruption exceeds at least R2 trillion.

Former Minister of Economic Development Ebrahim Patel, in 2017, told an economic policy conference that government modelling at the time showed that R27 billion per year was lost to corruption in the public sector.

Finance Minister Enoch Godongwana in March last year stated that R520 billion had been spent on bailing out poorly managed state-owned entities.

A South African Institute of Chartered Accountants (SAICA) initiative from 2021 showed that R1.5 trillion was looted in corruption between 2014 and 2019 alone.

NOW READ: Paycheques gutted by debt, particularly among high earners