JOHANNESBURG, Aug. 26 (Xinhua) -- The South African Revenue Service (SARS) on Monday said they are cleaning the department to uproot corruption and make it efficient.
SARS Commissioner Edward Kieswetter said this at a tax indaba in Johannesburg.
He stated that there are 1,177 tax-related cases awaiting prosecution and the list is increasing.
The previous tax commissioner Tom Moyane was fired after being accused of corruption, maladministration and state capture.
"Our legal mandate authorizes us to collect taxes. That we serve a much higher purpose to which tax revenue is simply a means. The success of SARS is integrally linked to the well-being of our democracy. If SARS fails, our democracy fails. Despite the challenges, the rebuilding of SARS has begun," said Kieswetter.
He pointed out that low growth rate does affect the revenue collection. "When our revenue collection is undermined this traps us in a vicious cycle or revenue decline, as we have experienced, and consequently the need to go with begging bowls to borrow money which effectively mortgages our future."
He said that "SARS exists to enable government to build a capable democratic state that fosters sustainable economic growth and social development in the interest and well being of all South Africans. This is our higher purpose."
The Deputy Finance Minister David Masondo called on all stakeholders to support the SARS commissioner in cleaning the tax department.
He pointed out that they are concerned about the decline in tax collection and budget deficit.
"All aspects of our fiscal policy are not looking good despite quite significant policy adjustments made in the recent past, tax revenue has been declining. Our debt service costs are high from our social and growth-enhancing expenditure. We need to ensure that our fiscal policy is sustainable so we can sustain state legitimacy," said Masondo.
The tax indaba which stated on Monday will end on Friday. It is being attended by government, banks and business communities.
