Finance Minister Trevor Manuel has congratulated the South African Revenue Service (SARS), businesses, and tax payers for the revenue they have collected since the end of the fiscal year on Monday.
"It gives me great pleasure to announce that SARS collected a preliminary R571.8 billion during the fiscal year 2007/08. This was the number recorded at 2.40am this morning.
"I am extremely appreciative of the tremendous cooperation by many businesses, larger corporations and smaller enterprises, and individuals," said Mr Manuel speaking via satellite linkup from Addis Ababa, Ethiopia.
The minister is in Ethiopia attending the United Nations Economic Commission for Africa (UNECA).
The preliminary result, he said, is R0.8 billion above the revised budget estimate made in February 2008, and R15.2 billion above February last years estimate of R556.6 billion.
"Our preliminary estimate of national expenditure is R541.6 billion, bringing the main budget surplus to R18.5 billion or 0.9 percent of Gross Domestic Product (GDP) which is 0.1 percent higher than the February 2008 estimate," he commented.
On Monday, SARS had collected the equivalent sum of above $4 billion, which the minister said was a very significant achievement.
In terms of the various sectors which contributed to the growth in Corporate Income Tax (CIT) in 2007/08, manufacturing led with 22 percent, followed by mining with 12 percent, financial services with 11 percent, and the wholesale and retail sector with 10 percent, amongst others.
Personal Income Tax (PIT) was marginally higher despite higher interest rates and rising fuel food and fuel costs as a result of considerably higher wage settlements, singling out the public sector wage settlement in particular.
"The growth in employee compensation from 10.6 percent in 2006 to 11.7 percent in 2007 and the increase in the number of jobs resulted in the strong growth of PIT," said Mr Manuel.
The country's excellent revenue performance was based on the following factors in the last financial year including domestic GDP growth of 5 percent; robust growth in fixed investment spending boosted by import of capital goods; higher inflation and interest rates; as well as a slow down in household consumption. - BuaNews
Compiled by the Government Communication and Information System