SARS expects to see impact of increase in tax collection efforts from Q2
CAPE TOWN - The South African Revenue Service (SARS) said the impact of it ramping up its efforts to collect more taxes would be felt by the second quarter of this financial year.
Treasury again warned Parliament on Friday that it would increase taxes next year in efforts to plug a R20 billion budget shortfall in the next financial year if SARS doesn't produce the money.
SARS is receiving R7.5 billion over the next three years to bolster its capacity to collect more taxes, which it estimates could be as much as R50 billion a year.
ALSO READ:
• Expanding list of tax-free food items won't benefit poorer households: Treasury
• Treasury defends fuel levy increase
Last week, SARS Commissioner Edward Kieswetter, said the aim was to employ at least 1,700 more staff to allow it to go after those not paying taxes.
On Friday, the revenue service's head of legislative policy tax, Franz Tomasek, told Parliament's finance committees it was still in the process of training and appointing more debt collecting staff.
"Our initial focus is going to be on undisputed debt. But that will need to be underpinned by revenue recovery measures targeting the tax gap as we move into the outer years. The results will be reported monthly, and bearing in mind the ramp-up period, we are expecting those efforts to start gathering pace by the beginning of the second quarter of this year."
Tomasek said he hoped these efforts would mean the finance minister would reconsider his intention to raise taxes next year.
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