SARS ready to take responsibility of filling revenue gap in national budget
JOHANNESBURG – The South African Revenue Service (SARS) has indicated it's ready to take up the responsibility of filling in the revenue gap in the national budget.
On Wednesday, Finance Minister Enoch Godongwana presented the budget but didn't include an increase to value-added tax (VAT).
READ: FULL SPEECH: The 2025 Budget Speech - 21 May 2025
In his previous two failed budgets, Godongwana was adamant on raising VAT, saying it was the only way the government could continue to fund some of its critical programmes.
Godongwana has shifted some of that revenue-raising responsibility to SARS, saying it will be able to raise an additional R20 to R50 billion a year due to increased staff capacity.
SARS commissioner Edward Kieswetter said, 'We don't think of it as a lot of pressure, we think of it as a greater reliance on the SA Revenue Service in terms of its role to strengthen the fiscal integrity of South Africa.'
Kieswetter said the revenue service has an uncollected tax bill of R500 billion.
'That includes penalties, interests, debt that will never be collected because it is not economical, some taxpayers are no longer in business, so we are saying even if through a focused effort we can collect a third of that, and it will be R150 billion or more.'
ALSO READ: Budget 3.0: Keeping VAT at 15% limits funding for new initiatives, says Godongwana
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
9 hours ago
- The South African
Will Joslin Smith state witness get indemnity or face JAIL?
The state witness in the Joslin Smith trafficking trial, Laurentia Lombaard, is awaiting her fate of indemnity or a prison sentence in a special hearing under the Western Cape High Court. The woman – a former accused who turned State 204 witness – has previously stated under oath that the missing girl's mother, Kelly Smith, allegedly sold her daughter to a sangoma for R20 000. Last week, Kelly, her boyfriend Jacquin 'Boeta' Appollis, and pal Steveno van Rhyn were sentenced to life in prison for trafficking and kidnapping. The trio has 14 days to apply for leave to appeal the sentence. Joslin went missing from her home in Saldanha Bay on 19 February 2024. She has not been found. Speaking to the SABC, National Prosecuting Authority (NPA) prosecutor Zelda Swanepoel revealed Western Cape High Court Judge Nathan Erasmus would hear evidence and arguments from both the prosecution and the defense pertaining to state witness, Laurentia Lombaard. He would impose her sentence in a separate hearing. Swanepoel said: 'We will be called upon to argue and indicate why we say she should or should not be granted indemnity. 'Our argument is that she should be granted indemnity.' State witness Lourentia Lombaard testified that Kelly Smith sold her daughter Joslin to a sangoma. Will she be granted indemnity for her testimony? Images via YouTube screenshot: SABC News. Laurentia Lombaard – a State 204 witness – previously stated under oath that Joslin Smith's mother, Kelly Smith, allegedly sold her to a sangoma for R20 000. Lombaard also claimed in her testimony that Kelly had offered her R1 000 in 'hush money'. She added that she had not received the money, even after confronting Kelly about it. Late last year, charges were withdrawn against Lombaard, who was granted provisional indemnity from criminal prosecution. However, her credibility was questioned when she admitted to lying to police in a recorded statement after Joslin Smith's disappearance. Her version of events from her March 2024 statement differs from her confession to police in October, when she agreed to turn state witness. In court, she admitted to being under the influence of drugs when making the initial statement. According to the Criminal Procedure Act, a Section 204 witness can receive indemnity from criminal charges, provided that their testimony and evidence help incriminate the accused. In the case of Joslin Smith, the NPA offered Lombaard witness protection in exchange for her testimony against Kelly Smith, Boeta Appollis, and Steveno van Rhyn, who have since been convicted and sentenced. If the court does find that Lombaard did not testify truthfully, she could face prosecution for perjury and related charges. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 . Subscribe to The South African website's newsletters and follow us on WhatsApp , Facebook , X, and Bluesky for the latest news.
The Citizen
9 hours ago
- The Citizen
More than R140 million in salaries paid to suspended government employees
National departments paid nearly R51 million to suspended government employees, while provincial departments spent more than R90 million in the 2024/25 financial year. Government has paid more than R140 million in salaries to employees who have been placed on precautionary suspension during the 2024/25 financial year. This is according to public Service and Administration Minister Mzamo Buthelezi, who was accounting to the National Assembly during the Governance Cluster question and answer session on Wednesday. Buthelezi said as of the end of the fourth quarter of the 2024/25 financial year, national departments paid R50 945 064 to the suspended employees while provincial departments spent R90 469 562. The minister was responding to Al Jama-ah member of parliament (MP) Shameemah Salie, who had asked what the current estimated total cost of ghost employees and suspended employees on the payroll of government was. Ghost employee audit still incomplete Salie also asked what work had been done prior to the Budget Speech to recover funds lost from paying fraudulent salaries. Buthelezi said the total cost associated with ghost workers had not yet been determined. 'This cost will only become known once a comprehensive employee verification process across public service has been completed and the financial implications accurately calculated,' he said. 'However, the Department of Public Service and Administration and National Treasury are jointly leading this exercise, and once the report is finalised it will be shared with the relevant parliamentary committee and this house.' Salie further said the issue of ghost workers had been an ongoing battle for decades and had resulted in millions being lost per yearly. ALSO READ: Gauteng health freezes 66 salaries in ghost employee crackdown 'We urge the minister and all relevant departments to ensure an audit across government and to provide frequent feedback on findings surrounding ghost workers, prosecution of and recovery of funds from these entities,' Salie sad. Buthelezi defends 'bloated' public service wage bill ANC MP Pumelele Ndamase asked what the overall impact of ghost workers was, in which departments they were mostly found and whether Buthelezi's department is actually aware of how ghost employees end up being in the employ of the state. The public service is often accused of being bloated, Ndamase said, while simultaneously struggling to meet the demand of South Africans. In response, the minister said while it is widely believed that the public service wage bill is too high, the department has a different view. 'We do have many vacant posts in the department and many departments who are struggling to even employ because they have a shortage of staff members, because the government cannot afford to pay their salaries,' Buthelezi said. 'So, the issue of a bloated public service wage bill is not necessarily the case, but we do appreciate the fact that we view that as such because our economy is not growing at the rate that it should.' He said the challenges of the country's stagnant economic growth had a bearing on the expenditure where public employees are concerned. Thorough investigation With regard to the departments affected by ghost employees, Buthelezi repeated that there were currently no statistics, but the department is engaged in a thorough investigation. Before posing his question, Rise Mzansi's Stanford Makashule Gana Minister said the 'ghost employees' should be referred to appropriately – public servants who 'give themselves more than one salary'. ALSO READ: R6 million in salaries paid to ghost workers in Mpumalanga 'Trigger-happy managers' Gana finally asked if the Buthelezi's department is considering attaching cost orders to managers who are trigger happy and quick to suspend public servants who don't deserve to be suspended. 'As a department, when it comes to managers who simply suspend employees willy-nilly, we have come up with a directive that says whenever there is an employee that is alleged to have committed a particular offence, instead of suspending that person and continuously get a salary, that person must be transferred to another department or unit,' Buthelezi responded. He said he was not aware of public servants earning more than one salary and that the department is putting systems in place to curb wastage. Redundancy audit Heloise Denner, FF Plus MP, asked if the department had considered or assessed the feasibility of implementing an audit to identify redundant posts within the public service in order to reduce costs. In response, the minister said the department is already putting systems in place to deal with redundancy. He said that the departments need to first consult the Department of Public Services and Administration whenever there's a post to fill. '[This is so that] we look into whether or not there is a need for that particular post or if it means they redefine their organogram,' Buthelezi said. '[They must] also consult with National Treasury to see that there are funds available so that we prevent departments from employing people for posts which do not add any value into the system,' he added. NOW READ: 'It's a scam': Mbalula says Prasa's ghost workers saga to be referred for criminal investigations
IOL News
13 hours ago
- IOL News
Third time's the charm: Godongwana's 2025 budget finally approved
Minister of Finance, Enoch Godongwana's 2025 National Budget has finally been approved following the adoption of the fiscal framework that is the backbone of the budget. Image: Independent Newspapers Minister of Finance, Enoch Godongwana's 2025 National Budget has finally been approved following the adoption of the fiscal framework that is the backbone of the budget. This was Godongwana's third attempt to get the National Budget passed after an outcry over two proposals to increase VAT. During a joint meeting with Standing Committee on Finance, and the Select Committee on Finance, Members of Parliament adopted the document that establishes economic policy and revenue projections and sets the overall limits for government spending. The process, which took three hours on Wednesday, was not without its issues, with some members arguing that the process was flawed and that not everyone was able to make their voice heard. Insults also flew, with one member saying that her peers should 'learn to read'. In presenting the May 21 National Budget, Godongwana said there were no austerity measures, although government spending was held back. The fuel levy as well as sin taxes were increased. The budget invests over R1 trillion in critical infrastructure to lift economic growth prospects and improve access to basic services, Godongwana said on May 21. He added that this would be done without compromising the fiscal strategy of sustainable public finances. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Government has achieved its balancing act by reducing additional spending over the medium term by R68 bilion after facing a R75bn revenue hole as VAT was not being increased. In May, Godongwana added that the government would continue to pay large amounts to service debt, which would amount to more than R1.3 trillion over the next three years. 'Put differently, this means in 2025/26 alone we are spending around R1.2bn per day to service our debt,' he said. IOL
