The South African Revenue Service (SARS) has been praised for being at the center of government efforts to better the lives of the most vulnerable members of society, having collected R18 trillion over the past 25 years.
President Cyril Ramaphosa delivered the keynote presentation at the 25th anniversary commemoration of the revenue collector on Friday. In October 1997, SARS opened its doors for the first time.
Since its creation, the President stated, SARS has supplied the democratic government with the financial resources necessary to fulfill the promise of freedom and improve the quality of life for all.
“At the time, we were lucky to have visionary and shrewd leadership that brought together diverse competencies, bureaucratic structures, and policies to create this powerful symbol of hope.”
Deputy Minister of Finance David Masondo, Minister of Public Enterprises Pravin Gordhan, Commissioner of SARS Edward Kieswetter, Auditor-General Tsakani Maluleke, and Deputy Governor of the South African Reserve Bank Kuben Naidoo were present.
The occasion was also attended by the Chairman of the Parliamentary Standing Committee on Finance, Joe Maswanganyi, the Director-General of the Presidency, Phindile Baleni, and Judge Dennis Davis. Virtually, Finance Minister Enoch Godongwana addressed the event.
President Ramaphosa stated, “The institution has always realized that it is at the center of our efforts to enhance the lives of the most vulnerable members of society.” SARS was created to have a revolutionary effect beyond its revenue and compliance responsibilities. This is due to SARS’s income collection.”
During the COVID-19 epidemic, the government provided tax relief measures that were efficiently managed by SARS to assist distressed enterprises.
He stated that these actions were designed to avert industrial closures, job losses, and to defend the livelihoods of workers. None of these financial interventions would have been possible without the devoted work of SARS officials.
Since its establishment in 1997, SARS has amassed more over R18 trillion for the government.
These trillions were allocated by the President to fund various programs that have improved the lives of South Africans.
“When comparing the amount of R1.6 trillion collected by the end of March 2022 to the R147 billion collected by SARS in 1996/1997, one becomes aware of the tremendously impressive work that SARS performs.
“This success is a result of the enthusiasm, dedication, and concentration of the SARS employees in bringing to life the larger goal I mentioned before,” he stated.
The President emphasized the importance of enhancing service delivery, eradicating corruption, and reviving the economy.
He honored the SARS workers, stating that they were “our unsung heroes who have persevered to carry out their patriotic duties during the most trying of circumstances.” These included, among others, the global financial crisis of 2007-2008, the country’s economic woes, the State Capture period, and the COVID-19 epidemic.
Unfortunately, he argued, none of these lessons could have equipped SARS to defend itself against a well-orchestrated takeover by “self-serving individuals who were not only indifferent to the greater goal I mentioned, but were actively antagonistic to it.”
In 2018, President Ramaphosa established the Commission of Inquiry to review the state of the revenue collector, whose standards had declined between 2014 and 2018.
“The most devastating finding of the Commission was that there was a catastrophic breakdown of governance and integrity at SARS, which was made possible by the purposeful demolition of tried and true organizational systems.
“I committed to carrying out all of the Nugent Commission of Inquiry’s recommendations. I am aware that the Ministry of Finance, National Treasury, and SARS have implemented a significant number of the Commission’s recommendations,” he stated.
“My administration and the necessary institutions will continue to focus on the few exceptional individuals.”
The President emphasized the need of taxpayers and merchants adhering to their legal responsibilities in order for SARS to carry out its duties effectively.
“I salute all taxpayers who abide by the law and fulfill their tax duties. Your compliance enables SARS to fulfill its mission of collecting all due income, he said.
SARS, according to President Ramaphosa, is a prime example of an efficient and productive government agency.
“The hopeful progress of repairing SARS is evidence that it is possible to arrest ourselves and recover from the severe damage we sustained during state captivity.
I would like to encourage SARS to continue in this manner and motivate other government agencies and entities to do the same.
“It is essential that SARS continue to carry out its mission without fear, favoritism, or bias,” he stated.
Kieswetter stated that during the next quarter-century and beyond, the nation has a tremendous obligation “to fight any effort from any quarter and to safeguard this crown gem of our democracy.”
He stated, “We have a tremendous responsibility to promote the independence, integrity, and institutional capacity of SARS. The Revenue Authority must be let to act and carry out its responsibilities, and it must do so with unimpeachable integrity.
Godongwana stated that SARS serves a crucial role in preserving the integrity of the national economy.
“Year after year, the revenue agency has more often than not beaten the odds of a weakening economy and a contracting tax base by delivering more revenue than anticipated. SARS was able to collect almost R17 billion more than anticipated in the last fiscal year alone. This is music to my ears as the Minister of Finance,” he remarked.
The Minister stated that this accomplishment was the result of the agency’s staff’s hard work and commitment, as well as the leadership team’s extraordinary effort.
The collective ideals established in our Constitution are supported by strong institutions based on the rule of law, honesty, and excellence. These institutions will outlive our generation and ensure the prosperity of future generations. Our institutions must be designed to withstand the inevitable winds and challenges of a young and expanding democracy. Testing these institutions is only natural. There is evidence that our institutions are well-equipped to pass these exams. This resiliency is demonstrated by SARS. Long may it continue,” he remarked.