The Gamagara Local Municipality in the Northern Cape boasts South Africa's highest average taxable income. File picture
THE AVERAGE South African may not have heard of the Gamagara Local Municipality in the Northern Cape, but it has secured a notable claim to fame: the highest average taxable income in the country.
The municipality is made up of several towns and villages, including Kathu (the administrative centre), Olifantshoek, Dingleton, Deben, and Dibeng. Kathu is well-known for its massive open-cast iron ore mine.
According to the latest tax statistics released by the National Treasury and the South African Revenue Service (Sars), Gamagara recorded an impressive average taxable income of R518,808 for the 2023/24 fiscal year.
This places the municipality ahead of heavyweights like the City of Johannesburg, which recorded the second-highest average taxable income of R484,671. Meanwhile, Stellenbosch in the Western Cape secured third place, with an average taxable income of R458,198.
There appear to be hidden gems of wealth in the Northern Cape, with two other municipalities making the top 10 list for high average taxable income. The Joe Morolong Municipality has an average taxable income of R427,977, while the Tsantsabane Local Municipality has an average taxable income of R405,926.
TAX COLLECTION
The Revenue Service has meanwhile noted that over the past 30 years, tax collections have increased from R113.8 billion in 1994/95 to R1 740.9 billion in 2023/24, at a compounded annual growth rate of 9.9% and an average tax to Gross Domestic Product (GDP) ratio of 22.2%.
Sars said that since the inception of the tax authority in 1997/98, it has collected more than R21.1 trillion for the country’s social and economic development.
It also added that in the 2023/24 fiscal year, Sars collected R2.2 trillion in gross tax revenue and this was R87 billion more than in the prior year.
In addition, the taxman refunded R413.9 billion back to South Africans, R32.8 billion more than in the prior year.