Godongwana boosts SA Revenue Service's ability to collect more tax
Godongwana says he’s kept this in mind and the treasury has now allocated SARS R3.5 billion in the current financial year and an additional R4 billion over the medium term.
Outside the South African Revenue Service's Tshwane headquarters. Picture: X/@CityTshwane
CAPE TOWN - Finance Minister Enoch Godongwana is meeting SARS Commissioner Edward Kieswetter halfway and will boost the revenue collector’s ability to collect more tax.
Kieswetter has made it clear he’s not really in support of a tax or VAT increase, saying previously that SARS should rather be modernised and capacitated to collect the billions in untaxed revenue.
READ: Opposition parties criticise Treasury for hiking VAT
Godongwana said that he kept this in mind and the Treasury has now allocated SARS R3.5 billion in the current financial year and an additional R4 billion over the medium term.
The finance minister said that broadening the tax base and improving administrative efficiency would allow SARS, over time, to spread the tax base more "evenly and equitably".
SARS had indicated previously that it was owed almost R800 billion in untaxed revenue.
Delivering his Budget Speech, Godongwana said by the end of February, SARS reported a "significant" increase in undisputed debt or billions owed to the state.
"The revenue collector has also detected 156,000 taxpayers who are not registered or have not filed despite their substantial economic activity."
But Godongwana said that the rewards of higher tax compliance would take time and the investments made on Wednesday would allow SARS time to make improvements.
"I call on all South Africans to comply with the law and support SARS in its endeavour to collect the revenues that enable government to fund and provide critical services."