Dr. Ngobani Johnstone Makhubu, the new Commissioner of the South African Revenue Service, plans to accelerate several key revenue initiatives [1, 2].
These priorities are critical as South Africa seeks to stabilize its fiscal position by increasing revenue collection and curbing the illicit economic activity that drains public resources [1, 2].
Makhubu said he will build upon the work initiated by his predecessor, Edward Kieswetter [1, 2]. The new commissioner's strategy focuses on expanding the tax base to ensure a broader range of contributors to the national treasury [1, 2].
One primary pillar of the new tenure involves targeting the illicit economy [1, 2]. By identifying and neutralizing illegal financial activities, the agency aims to bring more participants into the formal tax system, a move intended to increase overall compliance [1, 2].
Recovering outstanding tax debt is another priority for the agency [1, 2]. Makhubu said the organization will pursue these debts to ensure that the state recovers funds owed to it by individuals and corporations [1, 2].
To achieve these goals, the commissioner intends to engage more deeply with industry stakeholders and tax practitioners [1, 2]. He said that working closely with these professionals will help the agency refine its processes and improve the efficiency of tax collection [1, 2].
“Dr. Ngobani Johnstone Makhubu plans to accelerate several key revenue initiatives.”
The appointment of Dr. Makhubu signals a continuation of the current SARS strategy rather than a pivot in policy. By prioritizing the illicit economy and tax debt recovery, the agency is focusing on 'low-hanging fruit'—existing obligations and illegal loopholes—to boost state revenue without necessarily raising tax rates for the compliant population.
