Durban ratepayers associations have reacted to the South African Revenue Service’s (Sars) preliminary revenue collection results for the 2022/2023 financial year. They shared their thoughts on how they think the money should be spent in the next financial year.
As at midnight on March 31, Sars had collected a record gross amount of R2 067.8 billion. The net collection after payment of R381.1bn in refunds was R1 686.7bn.
Westville Ratepayers Association chairperson Asad Gaffar said this revenue collection had never been an issue; it was the looting that was crippling the nation’s economy.
He said the budget did not reflect this and the signs were there for everyone to see.
“The government continues to spend on unnecessary things which do not value the lives that matter the most. They need to focus on housing, education and health. This is what the previous government focused on, but for a select few. This government had the chance to focus on everyone, especially the poor and previously disadvantaged,” said Gaffar.
Reservoir Hills Ratepayers and Residents Association chairperson Ish Prahladh said Sars was doing an exceptional job in terms of what was due to the government but questioned whether the government was doing the same for its country.
“Ratepayers are definitely not getting value for their hard-earned money. Our municipalities are non-existent, resulting in a total collapse of our infrastructure. The government needs to start giving back to ratepayers by putting the money back into our infrastructure. Municipalities need to actually start functioning and employing more people on a permanent basis and stop wasting money on subcontractors,” said Prahladh.
“The water and electricity crisis leaves us in a worse off state than countries that are not receiving this kind of revenue. Our ratepayers have been dedicated and faithful but sadly have not received the same dedication from the government. This has to change with immediate effect.”
Prahladh said more needed to be done about corruption as that also affected housing, and suggested that the government could also channel money into business investments to create employment. It should also rebuild the railway system for passengers and goods.
The 2023 gross amount represents an increase of 9.7% over the 2022 collection of R1884.9bn, while the refunds amount for 2023 was 18.7% higher than the R321.1bn paid in 2022. The 2023 net revenue collected represented a year-on-year increase of 7.9% over the 2022 net revenue of R1563.8bn.
The net revenue of R1 687bn must be seen against the 2021/22 outcome of R1.568 trillion, representing a year-on-year increase of R123bn.
The achievement of R1.687 trillion represents year-on-year growth of 7.86% against a nominal GDP growth of around 5.8%, or a tax buoyancy of 1.38. In February 2023, the minister set an additional challenge of R94bn, and against that new estimate of R1 692bn Sars achieved 99.7%.
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