At the 12th South African Institute of Taxation Conference in Boksburg, Gauteng, South African Revenue Service (SARS) Deputy Commissioner Johnstone Makhubu unveiled bold plans to modernise the country’s tax and customs systems. His proposals include instant payment systems, e-reporting, and entity-based compliance to improve efficiency and combat illicit trade.
“If you look at customs and excise in our environment, you’ll hear us talking about our constant worry about illicit trade. And we think it’s important that we start to look at how we modernise both the customs side of our business, customs valuations, and how those affect transfer pricing, for instance,” Makhubu said.
He revealed that taxpayers owe more than R500 billion to the fiscus, stressing the urgency of intensifying domestic resource mobilisation. Makhubu also emphasised embracing digitalisation and artificial intelligence to meet growing revenue demands, while warning of challenges posed by an ageing workforce. He called for new talent recruitment and greater investment in tax administration capacity.
“The growing tech debt, we are sitting with around R513 billion. SARS has not had substantial write-offs of its debt book. There is still an opportunity that we can leverage,” he noted, adding that the acceleration of e-commerce demands updated policy responses.
Makhubu urged a whole-of-government approach, arguing that modernisation is key to closing the tax gap and tackling unemployment, inequality, and poverty.
VOC News
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