Kieswetter highlights trust and modernisation in SARS recovery

Outgoing SARS Commissioner Edward Kieswetter has reflected on his seven-year tenure, crediting trust-building, system modernisation and taxpayer compliance for the agency's recovery. He noted that SARS exceeded R2 trillion in revenue for the first time this year. However, Kieswetter warned that underfunding continues to hinder optimal performance.

Edward Kieswetter, who has led the South African Revenue Service (SARS) for seven years, spoke to SABC News in Pretoria about efforts to rebuild the institution. He emphasised building trust within the organisation, modernising the tax system and improving taxpayer compliance as central to its recovery.

Kieswetter pointed to improved revenue figures as evidence of success, with SARS surpassing R2 trillion for the first time in its history this year. "The success of SARS’ operational strategy is evidenced by the country improved revenue figures," he said.

Despite these gains, he acknowledged that the agency has not yet reached optimal performance. Speaking on funding challenges, Kieswetter stated: “SARS is still structurally underfunded and so the funds that Treasury made available was a project based funding, not all of that is in our base. So, that plea and arm wrestle with the Finance Minister and Treasury will continue, because until we address the structural underfunding of SARS and treat SARS like an investment centre as opposed to a cost centre, we are always going to be under performing.”

Over his tenure, SARS also worked to reconnect with its employees, according to Kieswetter.

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South African Finance Minister Enoch Godongwana presents the 2026 budget, highlighting debt stabilisation, social grants, and infrastructure investment.
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South Africa unveils 2026 budget focusing on debt stabilisation

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Finance Minister Enoch Godongwana presented the 2026 National Budget on 25 February 2026, announcing debt stabilisation at 78.9% of GDP and the withdrawal of proposed tax increases. The budget allocates R292.8 billion for social grants with increases for recipients and commits R1.07 trillion to infrastructure over the medium term. Reforms aim to enhance economic growth and public service efficiency amid a projected 1.6% growth for 2026.

South African Revenue Service collections hit R2.01-trillion in the 2025/26 financial year, exceeding the R2-trillion mark for the first time. The figure surpassed 2025 budget estimates by almost R25-billion and marks an 8.4% increase from the previous year. Commissioner Edward Kieswetter called it a historic crossing as he bows out.

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President Cyril Ramaphosa has appointed Ngobani Johnstone Makhubu, current deputy commissioner at the South African Revenue Service (SARS), as the new commissioner to replace Edward Kieswetter, who steps down at the end of April. Makhubu takes over in May amid ongoing efforts to sustain SARS's recovery from the State Capture era.

Finance Minister Enoch Godongwana is set to deliver South Africa's 2026 Budget speech on February 25, amid positive economic signals including a credit rating upgrade and rising commodity prices. These factors are expected to support efforts to cap the country's debt at 77.9% of GDP and advance fiscal consolidation. Economists anticipate a focus on stabilizing debt and outlining a path to lower ratios in the medium and long term.

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Nelson Mandela Bay's safety and security department has spent only 18% of its R72-million capital budget by the end of February, drawing sharp criticism from councillors amid rising crime rates. Officials face pressure to restore key technologies like the gunshot detection system and the mobile surveillance vehicle known as Loerboer. Repairs on the vehicle are progressing, with a projected return by 30 May.

In an open letter, tax expert Mon Abrea urges President Ferdinand Marcos Jr. to overhaul the Philippine tax system beyond just abolishing the travel tax. The letter highlights that Filipinos pay multiple taxes but receive inadequate public services and economic opportunities. It calls for comprehensive reforms to restore trust in government.

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The Auditor-General of South Africa has delayed signing off on the 2024-25 audit reports for the cities of Cape Town, Johannesburg, and Ekurhuleni due to formal disputes raised by the municipalities. These delays stem from disagreements over audit interpretations and technical matters, raising concerns about financial governance. Opposition parties have questioned whether the audit outcomes have worsened from the previous year.

 

 

 

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