Tax Collection target Exceed in South Africa

April 2, 2014 Taxation in South Africa

South Africa TaxJOHANNESBURG – Tax authorities in South Africa have collected more taxes than the government forecast for the year, and the extra funds will be used to help reduce the country’s debts and future borrowing requirements.

Total tax revenues in South Africa for the 2014 financial year were nearly ZAR 700 million higher than expected, and ZAR 85.6 billion more than collected last year, according to a statement made by the Finance Minister Pravin Gordhan on April 1st while announcing the preliminary outcome of revenue collections for the year.

Over the 2014 financial year the total tax collections in South Africa reached ZAR 899.7 billion, despite the fact that less than two months earlier the South African Revenue Service estimated that collections would only be ZAR 899 billion.

According to the Finance Minister, the three biggest contributions to the overall revenue levels came from the collection personal income taxes, corporate income tax, and value added tax, which reached ZAR 310.5 billion, ZAR 179.9 billion, and 237.7 billion, respectively.

Pravin Gordhan also noted that the extra ZAR 700 million will not be used to to increase government expenditures, but the amount will instead be used for debt consolidation, marginally reducing the amount that the government will need to borrow in the future.

In his statement the Finance Minister also noted that approximately 3.2 percent of all taxes collected were received by tax authorities on the deadline day, March 31st, with the last ZAR 700 million coming in during the last four hours of the day.

Photo by: Kyknoord