Two-pot Contributed Nearly R12 Billion In Tax Revenue Collections

The South African Revenue Services SARS has reported that the two-pot retirement system has contributed nearly R12 billion in tax revenue collections since its implementation last year.

It further notes that personal income tax was the biggest revenue contributor, with collections amounting to R733 billion.

During the preliminary revenue collections announcement in Pretoria, SARS Commissioner Edward Kieswetter told delegates that SARS had collected an above-expectation tax revenue amounting to R1.85 trillion in the 2024/25 financial year.

Two pot retirement withdrawals had a good multiplier effect. We saw a little of that uptick in consumption along with the Governors helpful hand to lower interest rates, and generally inflation trending down, and the net tax collected from this initiative being R11.87 billion. What is really pleasing here, if you look at the spread across the various tax margins, about 645 or a quarter of those who applied for the directive did not pay tax.