CAPE TOWN – The South African Revenue Service's preliminary collection data for the current financial year showed a deficit of R14.6 billion or 1.1 percent, the tax body said on Monday.
The revenue service collected R1.287,6 trillion, against the 2019 budget estimate of R1.302,2 trillion.
SARS said the gross amount of revenue collected was R1.575 trillion, but this was offset by refunds of R287.8 billion.
"The net revenue outcome of R1,287.6 billion represents a growth of R71.2 billion (5.8 percent) compared to the 2017/18 financial year."
SARS said gross collection increased by 8.6 percent but the quantum of refunds grew by 22.7 percent, in line with the announcement in the October Medium Term Budget Policy Statement that more VAT funds would be pushed back into the economy.
SARS said the main sources of revenue were personal income tax, which accounted for R493.8 billion or 38.3 percent, value-added tax, which brought in R324.6 billion or 25.2 percent, and company tax of R214.7 billion, that made up 16.7 percent of collections.
Customs duties contributed R55.2 billion.
Company income tax collections decreased by 2.5 percent, which SARS attributed to a large number of refunds paid to businesses regarding periods under audit review and "continued efforts to clear the IT credit book".
SARS said pay as you earn salary deductions grew by seven percent in spite of job cuts and moderate wage increases.
African News Agency (ANA)