How SARS missed its target

The SARS document, an overview of revenue collection for the year ended June 30, will be discussed at the standing committee on finance in Parliament on Wednesday. 

It reveals that SARS collected R275.42bn in the first quarter, R13.1bn lower than its target or printed target (PE).

The massive drop in revenue was mostly due to the following key developments, the report shows:

• SARS collected R1.6bn less import VAT than targeted, which was mainly due to declining contributions in machinery, original equipment components and photographic instruments.
   
• SARS collected R5.6bn less personal income tax than targeted, mostly due to lower than expected PAYE of R4.7bn. “The lower than expected PAYE was partly due to the early PAYE payments that were received in March 2017 instead of April 2017,” it explained.
• SARS collected R2.2bn less customs duties than targeted, mostly due to declining contributions in clothing, footwear and cereals.
• SARS collected R0.7bn less VAT refunds as real gross fixed capital formation recorded a slower growth of 1% quarter-on-quarter in the first quarter. “Temporary shutdowns by automotive manufacturers for plant upgrades also have a direct impact on exports,” SARS explained.
• SARS collected R0.9bn less in excise duties occurred mostly due to lower collections in cigarettes and tobacco of R1.2bn.
• SARS collected R2.7bn less corporate income tax, mostly due to a decline in tax payments of R2.4bn and lower assessment payments of R0.4bn.

http://www.fin24.com/Economy/sars-misses-first-quarter-tax-target-by-r13bn-20170912

Marius Snyman 27116913