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South Africa collects $85 billion in taxes in 2020/21 – revenue service

PUBLISHED: Thu, 01 Apr 2021 12:41:51 GMT

Mfuneko Toyana

Reuters

Photograph via Shutterstock

JOHANNESBURG, April 1 (Reuters) – South Africa collected 1.25 trillion rand ($85 billion) in tax revenue in the financial year ended March 2021, around 12% less than the government’s original target of 1.425 trillion rand, the revenue service said on Thursday.

The South African Revenue Service (SARS) said improved economic activity, higher collections company tax, especially mining firms, and greater tax compliance had helped to reduced the shortfall.

The initial 2020/21 target of 1.425 trillion rand was set by the National Treasury before the coronavirus pandemic struck in March last year. Treasury revised the estimate down to 1.112 trillion rand in October, but then upped it to 1.212 trillion in the February 2021 budget. ($1 = 14.6551 rand)

(Reporting by Mfuneko Toyana Editing by Tanisha Heiberg)