Remarks by President Cyril Ramaphosa on the visit to the South African Revenue Service (SARS) National Command Centre, Brooklyn, Pretoria

South African Revenue Service Commissioner Edward Kieswetter,  
Deputy Commissioners,  
Members of the SARS Exco,  
Representatives from SARS management,  
Representatives of government entities,  
SARS staff,  
Guests,  

Good Morning,  

It is an honour and privilege to be here at the SARS National Command Centre, which is the engine room of the South African state.  

The South African Revenue Service occupies a unique and critical role in the life of our nation; it is at the heart of our efforts to build a capable state.  

By strengthening compliance, SARS turns collection into capability.

It ensures that government has sufficient, predictable resources for the delivery of public services, to invest in infrastructure to better the lives of our people, and to drive inclusive growth.  

SARS is a creation of our democracy.  

And for nearly 30 years, it has sustained our democracy.

Since SARS was established in 1997 it has collected more than R23 trillion in tax revenue that has been used for social and economic development.

By harnessing new technologies, employing new methods and better understanding taxpayers, SARS has established itself at the forefront of innovation in tax revenue collection.  

This organisation stands as a shining example of global tax collection best practice.  

It is one of the most effective, best run and trusted state institutions in our country.  

In just five years, public trust in SARS has grown from 48 percent to 75 percent.  

The recent improvements in business and investor confidence are in no small part due to the diligent efforts of the South African Revenue Service.  

The regulatory environment is a key consideration for investors looking to bring their business to our country.  

They seek certainty in tax policy and honesty and efficiency in tax administration.  

When S&P issued our first sovereign credit rating upgrade in nearly two decades late last year, amongst the factors cited was strong value-added tax and corporate income tax receipts.

SARS was also instrumental in the work of the multi-disciplinary team whose efforts saw South Africa exit the Financial Action Task Force grey list in October last year.  

Given the heights SARS has scaled and the position in which it is now, it is easy to forget the difficult journey the organisation has traversed.  

Like a number of other key state institutions, SARS was severely impacted by the state capture era, with political meddling, mismanagement and corruption hampering its efficiency.  

To the organisation’s great credit, SARS moved swiftly to implement the recommendations of the Nugent Commission of Inquiry into tax administration and governance.  

Eight years later, the majority of the recommendations have been implemented as the organisation continues along its transformative journey to become “a smart, modern SARS with unquestionable integrity that is trusted and admired”.

Having largely achieved a turnaround, SARS has positioned itself to be at the forefront of efficiency and service excellence.

It has set its horizons on broadening the tax base, improving voluntary compliance and fiscal citizenship.

It has also focused on its own organisational capacity by strengthening leadership and governance, and on scaling up its modernisation efforts by leveraging people, data and technology.  

While we have seen early signs of recovery in our economy, these are difficult times.  

Revenue collection is more challenging, both domestically and globally.  

Slower economic growth and higher living costs are squeezing the tax base.

Even though we are on track to achieve a third consecutive primary budget surplus, giving us more room for social spending, we continue to rely on SARS to support the delivery of the strategic priorities of the Government of National Unity.  

We need to have the fiscal space to drive inclusive economic growth and job creation, reduce poverty and tackle the high cost of living, and build a capable, ethical developmental state.  

We do not want to burden future generations with debilitating debt.

We therefore welcome the launch last year of what has been dubbed Project AmaBillions, a SARS initiative to recover an estimated R300 billion in outstanding taxes that is legally due.  

We continue to rely on SARS in the ongoing fight against corruption and malfeasance in both the public and private sectors.  

Through lifestyle audits, enforcement actions directed at the illicit economy and other efforts, SARS is playing a leading role in this fight.  

Ultimately, every rand collected by the South African Revenue Service advances the nation’s development. We are greatly encouraged by SARS’ stated intent to continue to modernise its systems, to strengthen compliance and to safeguard its integrity.  

An effective organisation relies on dedicated, capable and motivated people.  

I want to take this opportunity to congratulate all the hardworking men and women of the South African Revenue Service, here at the National Command Centre and around the country, for their efforts. Yours is not an easy task.  

Thank you for doing what is one of the state’s most difficult jobs: enforcing tax compliance and taking tough decisions with fairness and integrity, often under immense pressure and criticism.  

Your role is an invaluable one. You are keeping public services funded and our society functioning. For this our nation thanks you.  

I also acknowledge all the men and women in the compliance and enforcement ecosystem who support SARS in its work: in the Financial Intelligence Centre, the South African Police Service, the National Prosecuting Authority, the Directorate for Priority Crime Investigation, the Special Investigating Unit and others.  

Cooperation with the private sector and other stakeholders is integral to SARS’ effectiveness. We acknowledge the role played by the financial institutions and data providers such as banks, insurers and fund administrators.

I want to thank the South African taxpayer who diligently acts in fulfilment of their responsibility to contribute what they should to building a better country.

Lastly, I wish to acknowledge and thank Commissioner Edward Kieswetter for his stewardship of SARS since 2019.

Your leadership has been vital to restoring the credibility and integrity of this critical South African institution.

You leave an organisation that is much more cohesive, efficient, capable and trusted than when you took office.

The real measure of your contribution is not how much revenue SARS collected during your tenure, but by how well prepared it is for a challenging future.

The country is deeply grateful for your outstanding contribution.  

This has been an immensely insightful visit. I am greatly impressed by what I have seen today.  

I leave here confident that SARS will continue to reach milestone after milestone in its ongoing quest to be a revenue service that is cutting-edge, innovative and agile.

A revenue service that does South Africa and its people proud.  

I thank you.