SARS has collected just over R2trn in gross tax revenues over the past year, a 9.7% increase from the 2021/22 tax year.

The gross revenues were R123bn above what the Finance Minister estimated in the 2022 Budget speech, according to a Fin24 report. This was the first time that SARS exceeded the R2trn gross tax revenue mark.

However, it was R5bn below SARS' own revised estimate.

‘Basically, for all intents and purposes, we have achieved what the (Finance) Minister set us out to achieve,’ said SARS Commissioner Edward Kieswetter.

Total tax refunds surged by almost 19% to more than R381bn, with VAT refunds increasing by almost 22% to R319bn.

‘We've seen a higher than usual growth in VAT refunds. In fact, it's the highest we've ever paid out. The R381bn is R60bn more than last year,’ said Kieswetter.

SARS said the refunds were primarily driven by capital investments by companies. SARS chief revenue officer Johnstone Makhubu said that while zero-rated exports largely drove the refunds, SARS saw a significant increase in capital investment imports.

The head of the large business unit in SARS, Narcizio Makwakwa, said the capital investments included maintenance due to load shedding damage. 

Insurers have also flagged the massive jump in power surge claims because of the power cuts.

Load shedding is affecting companies' profitability too – a double whammy for SARS, as it collects less corporate income tax from those affected while paying higher refunds.

Because of the high level of refunds, SARS ended the year with R1.7trn in net tax revenue, a 7.9% increase from the previous tax year.

But SARS still ended up with a tax buoyancy of 1.36%.

This tax buoyancy means that tax revenues in the country are growing faster than the GDP.

Full Fin24 report