SARS Chief reveals an estimated R800 billion in uncollected taxes

SARS Commissioner Edward Kieswetter has told Parliament that an estimated R800 billion in tax remains uncollected.

SARS, together with the National Treasury, was responding to submissions received by the Standing Committee on Finance as well as the Select Committee on Finance during public hearings on this year’s budget.

The budget that was tabled by Finance Minister Enoch Godongwana earlier this month proposed a 0.5 percentage point VAT increase annually for two years.

Several stakeholders, who participated in the public hearings, opposed the VAT increase.

SARS has reiterated that it is under-resourced to collect arrears, while the National Treasury appealed to MPs to make the budget efficient.

“Where are the opportunities to improve the administrative efficiencies and effectiveness, and to what extent can that improve the revenue outcome for the fiscal framework. We have been consistent in saying that government must invest in order to collect the revenue that is already due, even as it considers what additional taxes and tax policy adjustments to make these two things go hand in hand,” says Kieswetter.

“We accept that Parliament has got authority to amend the budget, but we would plead that the matters be focused on how to make this budget efficient and in this regard, we are approaching this thing with an open mind and will accept your guidance,” says Finance Minister Enoch Godongwana.