The Congress of South African Trade Unions (COSATU) congratulates the 14 500 employees of the South African Revenue Service (SARS) on their outstanding achievements, including surpassing R2 trillion in revenue collection and especially in exceeding 2024’s tax collections by 8.4% or R155 billion in taxes owed to the state.
The remarkable turnaround of SARS from being at the epicentre of the state capture project and systematically decapacitated, to once again becoming a centre of public sector excellence and ramping up the fight against tax evasion and customs fraud; confirms the state’s invaluable role in society. It shows that when the state is provided competent leadership, fills frontline vacancies and recruits critical skills, removes corrupt and criminal elements, and invests in its capacity and infrastructure; that government will deliver upon its mandates and provide the services and infrastructure necessary for society and the economy to thrive.
An efficient, effective and corruption free SARS is key to ensuring that the state can fulfill its constitutional and developmental mandates. The working class and the economy depend upon a state able to deliver quality education and healthcare, invest in critical infrastructure and stimulate inclusive economic growth, provide relief for the poor and the unemployed, amongst many other critical responsibilities to society. These require all South Africans, in particular the wealthy and businesses to pay their fair share.
The 8.4% improvement in tax collections validates COSATU’s campaign for SARS to be provided with the necessary support and resources to ramp up tax compliance and not to increase taxes upon the working class, in particular VAT and income. SARS’ consistent progress in improving tax compliance from 61% to 67% over the past few years under President Cyril Ramaphosa’s African National Congress led administrations has provided invaluable breathing space and additional resources for the state’s turnaround.
SARS must be tasked to raise tax compliance to 75% by 2029. This will generate sufficient funds to capacitate the state to provide quality public and municipal services, stimulate badly needed economic growth and jobs, and provide relief for the poor and the working class, including reducing the increasingly suffocating tax burden upon low- and middle-income workers. This has become more urgent given the global economic turmoil from the war in the Middle East and the record fuel price hikes that threaten to grind the economy to a halt.
Whilst applauding the tireless efforts of SARS’s employees and leadership, we remain deeply worried about the dangerous rise in illicit goods, in particular alcohol and tobacco, and also customs fraud, especially for clothing, tyres, fuel and vehicle components. These threaten local jobs, businesses and value chains as well as the sin tax regime designed to protect society from unhealthy products, and tax revenue needed to fund public services. It is urgent that SARS be given further funding and support to ramp up its fight against illicit goods and rampant customs fraud. This is not a battle that workers and the economy can afford to be lost.
COSATU thanks outgoing Commissioner Edward Kieswetter for his leadership during this particularly challenging time in SARS’ history. The Federation wishes him well in his next chapter in life.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za