SA’s tax revolution: modernising Sars for the digital economy

Sars for the digital economy

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SOUTH Africans know the South African Revenue Service (Sars) as one of the country’s most respected public institutions.

For years, Sars has stood out as a symbol of professionalism on the continent, a tax authority admired for its integrity, capacity, and results. In a time when trust in government is often fragile, Sars is a rare example of how strong institutions can hold a nation together.

But even strong institutions face new tests. The way money moves in today’s economy has changed dramatically. From mobile money to online shopping, from digital advertising to streaming services and even crypto, vast new markets have emerged. These are worth billions of rand, but much of it happens in the shadows of our tax system.

The paradox is striking. South Africa has some of the most sophisticated tax policies in Africa. The laws exist; the frameworks are solid. The challenge lies not in writing good tax policy, but in making sure it is fully executed in a world that is moving faster and becoming more digital by the day.

The policy execution gap

Think of it this way: having strong tax laws is like having an excellent recipe. But if the kitchen does not have the right equipment, or if ingredients go missing along the way, the final dish will not match the vision.

That is what many governments around the world are experiencing: a gap between tax policy and tax collection. The International Monetary Fund has warned that without closing this gap, countries will struggle to fund schools, clinics, and roads. It is not just about writing more rules or raising tax rates; it is about making sure the taxes that are already due are actually collected.