Sars shortfall of R66bn an improvement on 2019

JOHANNESBURG – Revenue collection in the country worsened during the financial year to the end March, with the SA Revenue Service (Sars) yesterday reporting a shortfall of more than R66billion as company income tax dwindled on weak economic growth.

Sars said its preliminary results showed that it collected R1.356trillion against the estimated R1.422trln made during the 2019 Budget.

But the tax agency said the collection was 5.3percent higher than 2019’s and R68.2bn growth for the 2018/19 financial year.

Last year, Sars collected R1.287trln with a R14.5bn deficit of R14.5bn.

In the past few years, the revenue-collection agency was plagued by mismanagement and allegations of state capture after failing on numerous occasions to meet its revenue targets. Commissioner Edward Kieswetter said Sars was working hard to reverse the dire state of affairs in which he found it when he joined in May 2019.