SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 8 OF 2000

7 APRIL 2000

SARS EXCEEDS ITS REVENUE COLLECTION TARGET

The South African Revenue Service (SARS) collected a total of R200 272 billion, exceeding the initial Budget estimate for 1999/2000 by R6  375 billion and the revised estimates by R1 328 billion. The 1999 Budget estimated revenue for the fiscal year at R193 897 billion. On the 23rd of February 2000, the Minister of Finance increased the revenue estimates by 2,60% to a total of R198 944 billion.

Over the past five years, SARS collected revenue above target totaling R25 billion including efficiencies built into the budget. The following table provides a breakdown of the excess revenue collected over the past five years:

This remarkable performance of the SARS has been made possible by the 12 000 men and women employed by SARS, who have dedicated themselves to effective revenue collection.

The coming year presents a new set of challenges for SARS. Firstly, SARS is required to collect a total of R212 billion. In addition to the meeting the revenue target, SARS has other exciting developments that are currently underway and will be announced later in the year. These include the introduction of electronic submission of returns, the introduction of the bulk data capturing system to stabilise and further enhance the efficiency of the New Income Tax System, collecting the Skills Development Levy, and other initiatives.

In the year ahead, SARS will pay particular attention to its Custom operations and will introduce several initiatives. These include:

• Introduction of accredited agents. SARS will hold a series of meetings with relevant stakeholders in the Customs industry in early May to discuss the dynamics of the programme
• Development and implementation of an electronic cargo clearance control system based on risk management with a view improving trade facilitation
• Drastic review of warehousing and transit operational provision and policies
• Establishment of a Road Fuel Testing Unit to combat mixing of paraffin or similar solvents with Diesel fuel of lubricity agents such as oils
• Implementation of Airport departure tax to be levied on all or certain categories of individual leaving the country. The departure tax will be introduced from 1 August 2000
• Implementation of rebate scheme on diesel for fishing industry and coastal shipping (1 June 2000)
• Joint bilateral operational blitz between the SARS and the customs authorities of our neighbouring countries
• Move towards a single administrative document for clearance within SACU/SADC.
• Infrastructure upgrading of key land border posts.

SARS will continue to sustain its contribution to the South African economy by ensuring the highest degree of efficiency in revenue collection and continuously improving the quality of its service to taxpayers and to the South African public.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA