GDP contraction and pressure on consumers and companies to pay more to the state at a time when talks of retail stimuli to spark the economy abound, will weigh on SA Revenue Service’s (Sars) attempts to raise R1.422 trillion for the next tax season.
Speaking at yesterday’s launch of the latest season, Sars commissioner Edward Kieswetter said it was going to be difficult to meet the tax target given the severe strains that the economy was under.
According to economics writer Sunita Menon, Kieswetter stressed that “we’re in an environment that’s contracting.
“We’ve seen announcements of retrenchments and job losses and many companies are reporting lower or no growth, which results in reduced profits, which results in lower taxes.”
He added that it will “clearly have an impact on how much revenue we collect”.
It was furthermore emphasised that Kieswetter, who has only been in his position since May, is still battling to implement turnaround strategies.
This comes as he endeavours to repair Sars following the disastrous tenure of former commissioner Tom Moyane, an enabler of Jacob Zuma, whose mismanagement and agenda for corruption caused crippling disruption of the tax authority’s systems and capacity.
