Things are looking up for the taxman

Another post-Zuma green shoot of hope emerged this week. The South African Revenue Service (Sars) announced an uptick in revenue collection, which increased by R72.4 billion, or 6.3% compared to the previous year.

Although the money raised through taxes and excise duties still fell short of a target which was revised downwards earlier this year, there are signs that Sars – which suffered dramatically under the reign of former commissioner Tom Moyane – is getting back on track.

Economic experts have said that although sluggish economic circumstances contributed to slower than expected revenue collection over the past few years, there was an undoubted lack of confidence in Sars from business and private individuals … and this slowed the pace of tax gathering.

Just in tax terms, the Moyane years at Sars were characterised by an increasingly cavalier treatment of taxpayers, making many feel like victims rather than the customers that the organisation claims they are. An example of this was the tardiness of refunds, especially significant ones involving VAT – a situation which hobbled the cashflows of many small and emerging businesses. So bad was the refund crisis that the tax ombudsman stepped in and make an adverse finding before the logjam started to ease up.

Then there was the unedifying spectacle of the alleged “rogue unit” within Sars, supposedly set up by former Sars head and finance minister Pravin Gordhan. That turned out to be part of the Zuma-influenced network of sleaze, but the tax office could not escape being tarnished.

The new Sars head, acting commissioner Mark Kingon, said the organisation is to focus on restoring its credibility and the vital relationship of trust with the taxpayer.

Kingon will have the reality of the Cyril Ramaphosa-initiated change to back up his commitment. Once people believe they have an honest government, they will happily pay their taxes.

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