The South African Revenue Service seeks to alleviate taxpayer debt through payment arrangements

VAAL TRIANGLE - The South African Revenue Service has initiated payment arrangements for taxpayers facing debt in a bid to address a growing fiscal deficit. This move comes in response to declining corporate income tax collections, contributing to a significant R22-billion deficit in tax revenues. SARS’ revenue growth target stands at 4%- to 6% but it has only achieved 2.6% growth due to decreased corporate taxes and increased VAT refunds. SARS has also resorted to outsourcing debt collection in cases where taxpayers fail to make payment arrangements.