The South African Revenue Service (SARS) exceeded the printed revenue target of R212.2 billion by R7.5 billion as well as the revised estimate of R215.5 billion by an additional R4.2 billion in revenue for the year ended as at March 31 2001.
The latest achievement means that SARS has consistently exceeded original and revised targets set by the Minister of Finance for the sixth time running.
Preliminary results show that SARS collected a massive R219.732 billion for the financial year 2000/2001.SARS' outstanding performance is attributed to the organisation's overall strategy of increasing compliance levels through focusing on the following key areas of operations:
More broadly, the organisation is committed to raising levels of tax and customs compliance in both the corporate sector and individual taxpayers. Higher levels of compliance play a crucial role in growing the country's economy.
The bulk of the surplus on the revised estimate, totalling R4.2 billion, was achieved in the area of INCOME TAX. SARS' compliance strategy delivered much higher than anticipated receipts from companies due to increased company profits as well as improved audit and assessment processes.
VAT collections were higher by R1.395 billion than the printed estimated amount due to improved private consumption expenditure and higher product prices linked to the depreciation of the rand and the high international oil price.
Secondary Tax on Companies (STC) registered about R1.988 billion higher than the printed estimate, mainly due to considerably higher corporate earning distributions from a number of big corporations.
Furthermore, Customs duties were approximately R1.577 billion more than the printed estimate, mainly due to increased import values during 2000. The value of imports increased year on year in 2000/01 by 28.8 percent as opposed to a growth of 3.3 percent in the previous year. A number of steps aimed at improving the operational efficiency of the Customs division were also taken over the past year, which contributed to the improved collections.
Collections from other taxes amounted to R5.577 billion, which is R359 million higher than the printed estimate. This is mainly due to higher than expected Transfer Duty collections. The value of mortgage transactions increased year by 37% in 2000 and the number of transactions increased by 27%.
The introduction of a call centre - a pilot project was launched in Randburg, Johannesburg, recently - also ensured that we reached a much wider target than before, thus contributing to efforts to optimise collections. In addition, the implementation of a debt management system on 15 October 2000 helped to contain and reduce outstanding debts.
The new financial year will see nationally co-ordinated, integrated campaigns focusing on high-risk industries and activities. Such campaigns will include audits, investigations and customs control. Key players in these sectors will be approached by SARS to fashion out a united approach to raising the levels of compliance and levelling the playing fields for all participants.
SARS staff contributed immensely by working around the clock in various offices countrywide during the last days before the financial year ended thereby providing a net for the collection of additional revenue.
The Commissioner wishes to express his heartfelt gratitude to SARS' staff for the commitment and dedication. He also thanks the progressive sectors of business for working with SARS in trying to achieve a co-operative approach to increasing compliance levels.
SARS will continue to strengthen its revenue collection capacity through the implementation of organisational re-engineering and transformation to improve its relations with all its clients. This will ensure an efficient service provision to all taxpayers.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA