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ActionSA welcomes the news that the South African Revenue Service (SARS) has collected R18 billion more in tax revenue than projected for the first six months of the financial year, proving that when SARS is properly funded, South Africa wins.

From the outset, ActionSA has been the leading voice in Parliament demanding that SARS receive the resources it needs to rebuild capacity and close the R800 billion tax gap caused by years of underfunding. Firstly, it was ActionSA that fought to ensure that SARS received more funding. Secondly, while GNU partners were fighting each other in court, it was ActionSA that submitted alternative revenue proposals to the ANC and its GNU partners advising that, with a capacitated SARS, there would be no need to increase VAT or personal income taxes on already overburdened South Africans.

ActionSA’s position has now been vindicated. The latest report from SARS Commissioner Edward Kieswetter confirms that revenue collection to end-September was 2% (R18bn) higher than estimates, driven by improved compliance, successful debt recovery, and stronger enforcement by customs and excise. This is the direct result of a properly funded SARS, a cause ActionSA has relentlessly championed.

During Budget deliberations earlier this year, National Treasury committed not to increase taxes if revenue targets are met. With SARS now exceeding these targets, there will be no justification for any further tax hikes in next year’s Budget. 

This is the role of a constructive opposition: not to oppose for the sake of politics, but to propose solutions that strengthen the state, protect taxpayers, and serve the national interest. ActionSA will continue to hold the Minister of Finance accountable to his commitment that ordinary South Africans will not face further tax increases so long as SARS continues to meet or exceed revenue targets.

Issued by ActionSA Member of Parliament Alan Beesley