FISCAL HOLE
SARS collection statement ‘just a publicity stunt’
The tax office has patted itself on the back for collecting R1-trillion in taxes, but economists warn there is still a huge fiscal hole
Tax analysts are sceptical about the timing of the latest revenue-collection statement by the South African Revenue Service (SARS), calling it nothing more than a public relations stunt. Citi economist Gina Schoeman said SARS released the statement because it was criticised for not being as efficient as it should have been. "They have to start celebrations, but we still have a huge fiscal hole. It’s important for team morale to celebrate but they have to be realistic," she said. SARS has patted itself on the back for collecting R1-trillion in taxes, saying it was the third successive year it reached this "milestone" and "crossed the psychological threshold of the one-trillion rand mark". Kyle Mandy, head of tax policy at PWC, said: "The statement is meaningless. What they actually collect in terms of the revenue target is what is important. SARS had released such statements in the past few years to change the perception about its poor performance. SARS commissioner Tom Moyane said t...
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