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Parliament finance committees welcome Tom Moyane dismissal

However, they say he was by no means the only person that contributed to the crisis at the revenue service, and government's revenue shortfall in this financial year.

FILE: Tom Moyane on 18 September 2017. Picture: Sethembiso Zulu/EWN

CAPE TOWN - Parliament’s finance committees have welcomed the dismissal of former South African Revenue Service (Sars) boss Tom Moyane.

However, they say he was by no means the only person that contributed to the crisis at the revenue service, and government's revenue shortfall in this financial year.

Sars will be paying out R20 billion in refunds over the next five months to clear a four-year backlog in withheld refunds under Moyane’s tenure.

Parliament’s finance committees say President Cyril Ramaphosa had no choice but to act on a recommendation from the Nugent commission to fire Moyane.

Chairman of the Standing Committee on Finance Yunus Carrim said: “You can’t just say you welcome the commissioner s dismissal, there were other people there who were extremely aggressive actually.”

Treasury director Chris Axelson says the R11 billion decrease in revenue projected for this year cannot be associated with the pending payout of value-added tax (VAT) refunds.

He says neither does it negate the revenue generated from an increase in the VAT rate.

“It really is a timing issue but it will have this one-off impact this year, but it will fall away from next year.”

MPs say it must still be determined whether Sars officials deliberately misrepresented its figures to Parliament and withheld VAT payments to meet revenue targets.

(Edited by Mihlali Ntsabo)

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