Total tax revenue collected for 2020/21 fell by 7.8% to R1,249.7 billion from R1,355.8 billion collected the previous year, tax statistics revealed.
The figures are contained in the 14th annual edition of tax statistics published by the National Treasury and the South African Revenue Service (SARS) on Tuesday.
The Treasury and SARS said in a statement that the 2021 edition provides an overview of tax receipts and tax filing information for tax years 2017 to 2021, as well as tax years 2016/17 to 2020. /21.
The document says revenue collection in the 2020/21 financial year has been “severely affected” by lockdown restrictions related to the COVID-19 pandemic and an already struggling economy that has contracted by 7 % in 2020.
Some of the highlights of the 2021 edition include the fact that total tax revenue collected by SARS increased from R1,144 billion in 2016/17 to R1,249.7 billion in 2020/21, increasing to a compound annual growth rate (CAGR) of 2.2% over this period. .
They said this was significantly lower than the CAGR of 9.0% achieved in the previous five-year period, from 2011/12 to 2016/17.
The document reveals that personal income tax (IRP) at 39.1%, corporate income tax (IRS) at 16.4% and value added tax (VAT) at 26 .5% overall remain the main sources of tax revenue and represent 81.9% of the total. tax revenue collection.
“The tax-to-GDP ratio fell from 23.8% in 2019/20 to 22.5% in 2020/21. This was mainly due to annual reductions in revenue collected from personal income tax, value added tax and specific state excise duties,” Treasury and SARS said in the joint statement.
Chapter 2 of the document on the PPI, geographic, demographic and other analysis of the assessments of taxpayers who had been assessed at the end of September 2021 for the results of the 2020 tax year was revealing.
They reveal that:
2,091,559 (40.1%) of assessed taxpayers were registered in Gauteng;
687,261 of the assessed taxpayers lived in metro Johannesburg and were taxed on an average taxable income of R481,209;
1,365,098 (26.2%) of taxpayers assessed were aged 35 to 44;
2,792,845 (53.6%) of assessed taxpayers were men; 2,420,951 (46.4%) were female;
Taxpayers assessed had a total taxable income of R1.8 trillion and a tax liability of R407.2 billion. Their average tax rate was 22.4% compared to 22.3% the previous tax year; and.
Income from salaries, wages and other remuneration as well as pensions, overtime and annuities accounted for 91.6% of total taxable income.
Chapter 3 corporate tax statistics reveal that of the 812,306 corporations assessed in September 2021 for the 2019 tax year, 24.0% had positive taxable income, while 48.3% had positive taxable income. zero taxable income and the remaining 27.7% reported taxable income. loss.
Chapter 4 indicates that in 2020/21, 79.3% of active VAT sellers were companies or related companies. They contributed 92.9% of domestic VAT payments and accounted for 91.2% of VAT refunds. Although individuals (sole proprietors) accounted for 15.3% of VAT sellers, they contributed 2.4% of domestic VAT payments and received 1.2% of VAT refunds.
“As detailed in Chapter 5, import VAT and customs duties accounted for 13.3% and 3.8% respectively of total tax revenue collected for the year; giving an aggregate of 17.1%, slightly below the average of 17.5% for the previous five years The share of these taxes in GDP fell to 3.8% from the previous five-year average of 4.1%, with import VAT registering 3.0% and customs duties at 0.8%,” the statement said.
For fiscal year 2020/21, both said the HS sections contributing the most to tariffs in 2020/21 were vehicles, aircraft and vessels (20.1%); Textiles and Clothing (19.0%); Machinery and Electronics (13.8%) as well as Food, Beverages and Tobacco (13.4%).
Imports under the Food, Beverages and Tobacco section, they said, “constituted 97.5% of total specific excise duties”.
They said these were largely due to cigarettes (37.1%) mainly from Switzerland; and whiskeys (35.4%) imported mainly from the United Kingdom.
“The Vehicles, Aircraft and Vessels (56.7%) and Machinery and Electronics (38.6%) sections were the largest contributors to the ad valorem total rights; with 30.1% of the former’s total made up of luxury vehicles from Germany, while 63.2% of the latter’s total is made up of electronics mainly from China.
“The overall effective duty rate in 2020/21 was 2.8% compared to 3.2% the previous year. The main products with the highest effective duty rates were footwear and accessories at 24.5 %; hides, skins and skins at 19.5%; textiles and clothing at 14.5%; food, beverages and tobacco at 9.8% as well as vehicles, aircraft and ships at 6.9%.
Other Taxes and Collections provides information on taxes such as Capital Gains Tax (CGT), Transfer Duty, Mineral and Petroleum Resource Royalty (MPRR), Customs Union Payments Africa (SACU) and Diesel Reimbursements.
In 2020/21, a CGT of R16.4 billion was raised, of which R8.4 billion was attributable to individuals and trusts and R7.9 billion to companies. A total of R173.1 billion has been raised since the introduction of CGT in October 2001, including R80.9 billion from individuals and trusts and R92.1 billion from companies.
(With contributions from the South African government press release)