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Editorial | Shining example: Sars shows the way out of state capture

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Sars announced this week that it had achieved a gross tax collection of R2.155 trillion for the 2023/24 financial year.
Sars announced this week that it had achieved a gross tax collection of R2.155 trillion for the 2023/24 financial year.
Gallo Images/Die Burger/Jaco Marais

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There was a time, not so long ago, when the very integrity of the country’s revenue service was deeply mired in the murky land of state capture. During the nine wasted years, poisoned tentacles had wrapped themselves around the institution and turned it into a roiling wasteland born of a hurricane of cronyism, abuse, captured management and spineless political complicity – little of it in the service of our country.

It is against this background then that kudos must be given to the SA Revenue Service (Sars). It announced this week that it had achieved a gross tax collection of R2.155 trillion for the 2023/24 financial year.

Sars has excelled. The complexity of maintaining efficient tax collection and ensuring the fiscus is well funded has been achieved under the excellent leadership of commissioner Edward Kieswetter. Little wonder then that his tenure has been extended by another two years to ensure a smooth leadership transition. This despite his desire to “retire – again”.

READ: Editorial | Interest rates: South Africans caught between a rock and a hard place

The revenue service has invested in data science, technology and AI.

It has paid refunds of R414 billion, while preventing R101 billion in fraudulent claims.

It has increased voluntary tax compliance to 63.9%.

As Kieswetter said: Since its inception, Sars has collected R21.6 trillion in net tax revenues.

The R21.6 trillion tax collections represent a compound growth of 9.9% per year since the inception of Sars in 1997

“This has funded the South African democracy and touched the lives of millions who would be destitute without government support and services.”

READ: Editorial | Let's protect students in the wake of Educor's deregistration fallout

If only the functioning of government generated just half the growth of revenue collection of Sars, the country would have an entirely different, and much brighter, outlook.


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