financial year
2 April 2007
The South African Revenue Service (SARS) can today provide an update on the
preliminary outcome of revenue collection figures after the 2006/07 financial
year ended on Friday, 30 March 2007.
The updated figures released today follow further reconciliation of inflows
into the National Revenue Account after midnight on Friday night and the
subsequent announcement of the preliminary revenue outcome by the Minister of
Finance on Saturday morning.
By midnight on Saturday 31 March SARS had collected R495,1 billion in
revenue for the 2006/07 fiscal year. This figure â which shall remain a
preliminary figure until a final external audit is completed later this year -
is R5,5 billion more than the revised revenue target announced in this yearâs
Budget. By midnight on Friday, 30 March 2007, the due date for final payment of
taxes and duties to SARS, total revenue stood at R493 billion. Since then a
further R2 billion was added to the total as reconciliations of inflows was
done with the banking system over the weekend.
The drivers of the robust revenue performance remain:
1. Stronger than expected economic growth driven mainly by domestic demand and
enhanced investments in the economy by the public and private sectors.
Higher than anticipated corporate profits in particular had a significant
impact on the outcome of revenue collection. For example, the gross operating
surplus in the mining sector grew by 25% driven by the boom in commodity prices
the financial services sector grew by 17% and the retail and wholesale sector
by 10% which continues to enjoy robust consumption demand.
Collections from PAYE increased significantly to about R133 billion or 10%
compared to last year. This was influenced by the increasing formalisation of
labour. The recent Labour Force Survey reveals that a greater number of people
are being absorbed into the formal job opportunities and that there is an
increasing confidence among job seekers about their chances to exploit
opportunities in the labour market.
2. Structural changes in the tax policy environment enacted through
legislation over the past few years have significantly broadened the tax base.
Such changes include the introduction of Capital Gains Tax, the switch from
Source to Residence based taxation. Between February and December 2006 the
income tax register has grown by 7%, the PAYE register by 6% and the VAT
register by 5%. SARS wishes to express its heartfelt gratitude to all South
Africans who have shown commitment to build a better life for all.
Enquiries:
Adrian Lackay
SARS Communications
Tel: 012 422 4206
Cell: 083 388 2580
Issued by: South African Revenue Service
2 April 2007
Source: South African Revenue Service (http://www.sars.gov.za)
