SARS pushes for President-led crackdown as illicit economy swells to R1.2 trillion

THE South African Revenue Service (SARS) has laid out an ambitious, system-wide plan to tackle the country’s ballooning illicit economy after ActionSA MP Alan Beesley warned in Parliament that the revenue authority remains underfunded and unable to fully confront organised criminal networks.

- SIPHELELE DLUDLA

Beesley on Friday argued that illicit trade had become “a cancer” on the economy, warning that South Africa was moving from “stage one to stage two” of a crisis that could soon spiral beyond control.

He called for an urgent, integrated response and proposed a discussion between the Finance Minister, National Treasury and SARS to address funding constraints. According to Beesley, strengthening SARS could be done without worsening pressure on the fiscus.

Addressing a joint meeting of the Standing and Select Finance and Appropriations Committees on Friday, SARS Commissioner Edward Kieswetter responded by acknowledging broad agreement on the need for a far more coordinated national effort.