Sars worried over ‘Decline in personal income tax’

JOHANNESBURG – The South African Revenue Service (Sars) says it is very worried about the progressive decline in personal tax contributions, which is the largest contributor to revenue in the country.

Sars’ Randal Carolissen said the decline in personal tax contribution is highly attributed to consumer reluctance and a slip in tax compliance.

Although he did not mention any figures, Carolissen highlighted that there are very few people in South Africa whose personal tax payments are up-to-date, adding that urgent measures to encourage people to pay are imminent.

“It is a slowdown from the previous growth levels. In the past it used to grow by over 12% and that speaks directly to the moderation of bonuses that were paid out in the financial sector. It also speaks to the reluctance of companies to hire and a lot of managers have lost their jobs.”

Carolissen highlighted that although tax revenue collection has almost doubled in the last decade, it severely dropped in the last financial year.

Sars is calling for all business owners to pay their taxes to the revenue and ensure that they are up-to-date to avoid unnecessary lawsuits.

The revenue authority also said it will be engaging with other organisations in ensuring that all businesses are fully paid up.

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