Outgoing SARS boss Kieswetter credits strong VAT and corporate tax for record revenue

Outgoing South African Revenue Service (SARS) Commissioner Edward Kieswetter has attributed the latest positive revenue collection outcomes to solid VAT and favourable corporate tax collections.

Speaking in Pretoria on Wednesday while announcing the latest preliminary revenue outcomes, Kieswetter noted that domestic VAT led the gains. Collections climbed by 7.6% year-on-year, finishing ahead of initial forecasts.

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Corporate tax collections also performed strongly, leaping by nearly 10% year-on-year, with growth recorded across both large firms and smaller businesses.

SARS has officially exceeded its R2 trillion revenue target, marking an 8.4% increase compared to last year’s collections. Kieswetter highlighted the significance of the achievement given the timeframe and the economic climate.

"It took us 22 years to reach the first trillion and less than half the time to double the revenue from R1 trillion to R2 trillion in an era of slow economic growth, load-shedding, and Covid-19," Kieswetter said. "We believe this is noteworthy and reflects the diligent work of our employees, the institutional integrity of SARS, and the tax administrator's centrality to the fiscal health of South Africa."