President Cyril Ramaphosa has praised the South African Revenue Service (SARS) as a cornerstone of the country’s democratic and economic development, describing the institution as “the engine room of the South African state”.
The President was speaking on Thursday during an oversight visit to the SARS National Command Centre in Brooklyn, Pretoria, where he was briefed on the organisation’s operations and ongoing modernisation initiatives.
“It is an honour and privilege to be here at the SARS National Command Centre, which is the engine room of the South African state,” President Ramaphosa said.
He emphasised the unique role SARS plays in building a capable state and sustaining democracy, noting that the institution has been central to funding public services, infrastructure development and inclusive economic growth.
“The South African Revenue Service occupies a unique and critical role in the life of our nation; it is at the heart of our efforts to build a capable state,” the President said.
By strengthening compliance, the President said SARS ensures that government has sufficient, predictable resources for the delivery of public services, to invest in infrastructure to better the lives of the people, and to drive inclusive growth.
President Ramaphosa highlighted SARS’ contribution since its establishment in 1997, noting that the institution has collected more than R23 trillion in tax revenue over nearly three decades.
“SARS is a creation of our democracy. And for nearly 30 years, it has sustained our democracy,” he said.
He commended SARS for embracing innovation, saying that by harnessing new technologies and better understanding taxpayers, the organisation has positioned itself at the forefront of global best practice in tax administration.
“This organisation stands as a shining example of global tax collection best practice. It is one of the most effective, best run and trusted state institutions in our country,” the President said.
President Ramaphosa noted that public trust in SARS has grown significantly in recent years, increasing from 48 percent to 75 percent in just five years. He added that improvements in business and investor confidence are linked to the work of the revenue service.
“The regulatory environment is a key consideration for investors looking to bring their business to our country. They seek certainty in tax policy and honesty and efficiency in tax administration,” he said.
The President linked SARS’ performance to South Africa’s first sovereign credit rating upgrade in nearly two decades, noting that strong value-added tax and corporate income tax receipts were among the factors cited by S&P.
He further acknowledged SARS’ role in the multidisciplinary efforts that led to South Africa’s removal from the Financial Action Task Force grey list in October last year.
Reflecting on the institution’s past challenges, President Ramaphosa said SARS, like other key state institutions, had been severely affected during the era of state capture.
“Like a number of other key state institutions, SARS was severely impacted by the state capture era, with political meddling, mismanagement and corruption hampering its efficiency,” he said.
He commended the organisation for implementing the recommendations of the Nugent Commission of Inquiry and for its ongoing transformation.
“Eight years later, the majority of the recommendations have been implemented as the organisation continues along its transformative journey to become ‘a smart, modern SARS with unquestionable integrity that is trusted and admired’,” the President said.
While acknowledging early signs of economic recovery, President Ramaphosa said revenue collection remains challenging amid slow growth and rising living costs. He stressed the importance of SARS in supporting the priorities of the Government of National Unity.
“We need to have the fiscal space to drive inclusive economic growth and job creation, reduce poverty and tackle the high cost of living, and build a capable, ethical developmental state,” he said.
The President welcomed the launch of Project AmaBillions, a SARS initiative aimed at recovering an estimated R300 billion in legally due outstanding taxes and reiterated the institution’s role in combating corruption and illicit economic activity.
“Through lifestyle audits, enforcement actions directed at the illicit economy and other efforts, SARS is playing a leading role in this fight,” he said.
President Ramaphosa expressed appreciation to SARS staff across the country, acknowledging the difficulty and pressure associated with enforcing tax compliance.
“Thank you for doing what is one of the state’s most difficult jobs: enforcing tax compliance and taking tough decisions with fairness and integrity, often under immense pressure and criticism,” he said.
He also thanked partner institutions within the compliance and enforcement ecosystem, including the Financial Intelligence Centre, the South African Police Service, the National Prosecuting Authority and the Special Investigating Unit, as well as financial institutions and data providers.
In concluding his address, President Ramaphosa paid tribute to SARS Commissioner Edward Kieswetter for his leadership since 2019.
“Your leadership has been vital to restoring the credibility and integrity of this critical South African institution.
“You leave an organisation that is much more cohesive, efficient, capable and trusted than when you took office. The real measure of your contribution is not how much revenue SARS collected during your tenure, but by how well prepared it is for a challenging future,” he said.
President Ramaphosa said he was impressed by the visit and confident in SARS’ continued progress. – SAnews.gov.za
