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ActionSA condemns the parochial political attack on SARS Commissioner Edward Kieswetter. It is deeply concerning that SARS—one of South Africa’s most effective state institutions—is being undermined by the very leaders responsible for the country’s fiscal management.

This follows Finance Minister Enoch Godongwana’s “off-mic” yet live recoded remarks in Parliament, where he expressed frustration with the Commissioner, seemingly over Kieswetter’s well-founded opposition to tax hikes and his call for SARS to be properly resourced. Even more concerning was Minister in the Presidency Khumbudzo Ntshavheni’s whispered arrogant remark questioning when Kieswetter would be leaving (“uzohamba nini”).

ActionSA firmly rejects any attempt to pressure or intimidate SARS and its leadership. The revenue service must remain independent and free from political interference, especially from those who appear more interested in protecting their own interests than ensuring sound fiscal governance.

We fully support Kieswetter’s position that the solution to South Africa’s revenue challenges is not higher taxes but better tax administration. SARS has been critically underfunded since the tenure of corruption-accused former commissioner Tom Moyane, when its budget was cut by 12%. The result? A staggering tax gap of R450 billion per year and an estimated R400 billion in uncollected revenue—R850 billion left on the table while the government claims it lacks the funds to address the country’s pressing needs.

Last year’s Mini Budget allocated an additional R500 million to SARS, but this is simply not enough. Underfunding SARS also fuels illicit trade, costing the country hundreds of billions of rands annually in lost tax revenue. This begs the question of whether SARS is being deliberately weakened for political or corrupt ends.

ActionSA has been at the forefront of the fight to secure proper funding for SARS since the start of the 7th Parliament, and we will not relent until this critical institution is given the resources it needs to fulfil its mandate. We welcome the growing support from other political parties and organisations, including COSATU, in calling for urgent action.

The government must decide: Does it want to close the tax gap and restore fiscal integrity, or will it continue playing politics and increasing borrowing and taxation while billions in revenue slip through its fingers?

Issued by ActionSA