In a striking address at the Inclusive Growth Forum hosted by the Kgalema Motlanthe Foundation in the picturesque Drakensburg, South African Revenue Service (Sars) Commissioner Edward Kieswetter has revealed that the institution has defied the odds of the country’s sluggish economic growth by significantly improving its tax collection.
Kieswetter shared optimistic insights, noting that all indicators of tax collection are demonstrating compounded growth, a trend attributed to enhanced compliance amongst taxpayers. This development stands in stark contrast to the broader economic challenges faced by the nation, where growth has been hindered by various factors.
“We are witnessing a notable increase in public trust in Sars,” remarked Kieswetter. The commissioner’s assertion reflects a collective shift towards greater accountability and transparency within the institution, as efforts to boost compliance bear fruit.
However, while celebrating tax collection successes, Kieswetter cautioned against complacency. He emphasised the urgent need for South Africa to reconsider how it allocates its financial resources. “The sad reality in South Africa is that crime is more organised and better. Crime has become an alternative source of employment because the government has failed to create productive capacity that generates more jobs,” he stated, highlighting the critical intersection of economic policy and social stability.
As South Africa grapples with stagnant economic growth, Kieswetter pointed out that social grants have become a necessary buffer for the inadequacies in job creation. This leaves many in precarious situations, dependent on state support in a climate where employment opportunities dwindled.