Sars’s focus on the illicit tobacco market yields billions.
The South African Revenue Service has made a sizeable dent in clawing back some revenue losses due to the high levels of illicit tobacco products in the market.
Kieswetter said the largest contributors to its compliance programme in the tax year to date include the large business and international segment of the economy, where focused compliance initiatives yielded R17.2 billion – up by R15.7 billion from the prior year. Sars also prevented revenue leakage of R85.6 billion, while customs and excise interventions yielded another almost R13 billion.A concerning and disappointing move by Godongwana was the announcement of how the government intends to reduce borrowing requirements. The intention is to withdraw from the South African Reserve Bank’s Gold and Foreign Exchange Contingency Reserve Account .
Elna Moolman, head of macroeconomic research at Standard Bank South Africa, says it was disappointing that only “guiding principles” on how the funds will be used were provided in the budget. He also expressed concerns about dipping into the central bank reserves, even though it is understandable that a country may need to draw from its contingency reserves. The question is what methodology will be used that will not compromise the independence of the central bank.Minimum tax rate for multinationals imminent