Ramaphosa hails SARS as ‘engine room’ of the state, credits innovation for trust and growth

“It is an honour and privilege to be here at the SARS National Command Centre, which is the engine room of the South African state,” Ramaphosa said.

President Cyril Ramaphosa has described the South African Revenue Service (SARS) as the “engine room of the South African state”, praising its role in strengthening democracy, stabilising public finances and restoring confidence in the country’s institutions.

The President was speaking during an oversight visit on Thursday to the SARS National Command Centre in Brooklyn, Pretoria, where he received briefings on the revenue service’s operational capacity, data-driven enforcement systems and ongoing modernisation programme.

“It is an honour and privilege to be here at the SARS National Command Centre, which is the engine room of the South African state,” Ramaphosa said.

A democratic institution funding the state

Ramaphosa emphasised that SARS occupies a unique position in South Africa’s constitutional democracy, noting that the institution has been central to funding government services since its establishment in 1997.

Over nearly three decades, SARS has collected more than R23 trillion in tax revenue, financing social grants, public sector wages, healthcare, education and large-scale infrastructure investment.

“SARS is a creation of our democracy. And for nearly 30 years, it has sustained our democracy,” the President said.

He added that improved tax compliance ensures the state has predictable and sustainable resources to reduce poverty, expand infrastructure and support inclusive economic growth.

Innovation driving global best practice

A key focus of the visit was SARS’ use of advanced technology and data analytics to modernise tax administration. Ramaphosa commended the institution for embracing digital systems, real-time risk assessment and third-party data integration to improve compliance and service delivery.

“By harnessing new technologies and better understanding taxpayers, SARS has positioned itself at the forefront of global best practice in tax administration,” he said.

The President described SARS as “one of the most effective, best run and trusted state institutions” in the country, highlighting its international reputation for efficiency and integrity.

Rising public trust and investor confidence

Ramaphosa noted that public trust in SARS has increased sharply, rising from 48 percent to 75 percent in the past five years, a turnaround he linked to improved governance, transparency and enforcement consistency.

He said the credibility of SARS plays a critical role in shaping business and investor confidence.

“Investors seek certainty in tax policy and honesty and efficiency in tax administration. A credible revenue authority strengthens the overall regulatory environment,” the President said.

He linked SARS’ improved performance to South Africa’s first sovereign credit rating upgrade in nearly 20 years, with rating agency S&P citing strong value-added tax and corporate income tax collections as contributing factors.

Role in fighting financial crime and grey-list exit

Ramaphosa also acknowledged SARS’ contribution to South Africa’s removal from the Financial Action Task Force (FATF) grey list in October last year, noting its participation in multi-agency efforts to combat illicit financial flows.

Through lifestyle audits, targeted enforcement against the illicit economy and collaboration with law enforcement agencies, SARS has played a key role in strengthening financial integrity, he said.

Rebuilding after state capture

Reflecting on past challenges, Ramaphosa said SARS had been severely weakened during the era of state capture due to political interference, mismanagement and corruption.

He praised the institution for implementing the recommendations of the Nugent Commission of Inquiry, noting that the majority of reforms have now been completed.

“Eight years later, the organisation continues along its transformative journey to become a smart, modern SARS with unquestionable integrity that is trusted and admired,” he said.

Revenue pressures and Project AmaBillions

While acknowledging early signs of economic recovery, the President warned that revenue collection remains under pressure amid slow growth, high unemployment and rising living costs.

He stressed the importance of SARS in supporting the priorities of the Government of National Unity, including job creation, poverty reduction and lowering the cost of living.

Ramaphosa welcomed the launch of Project AmaBillions, a SARS initiative aimed at recovering an estimated R300 billion in legally due outstanding taxes, describing it as critical to widening the tax base without increasing rates.

Tribute to SARS staff and leadership

The President expressed appreciation to SARS employees nationwide, acknowledging the difficulty of enforcing tax compliance under intense public scrutiny.

“Thank you for doing what is one of the state’s most difficult jobs: enforcing tax compliance with fairness and integrity, often under immense pressure,” he said.

He also thanked partner institutions, including the Financial Intelligence Centre, SAPS, the National Prosecuting Authority and the Special Investigating Unit, as well as financial institutions and data providers.

In closing, Ramaphosa paid tribute to SARS Commissioner Edward Kieswetter, crediting his leadership since 2019 with restoring the institution’s credibility.

“You leave an organisation that is more cohesive, efficient, capable and trusted than when you took office. The real measure of your contribution is how well prepared SARS is for a challenging future,” the President said.

Ramaphosa said he was encouraged by what he saw during the visit and expressed confidence in SARS’ continued progress as a cornerstone of South Africa’s economic recovery and democratic stability.