MTBPS sets the stage for tax compliance and sustainable growth

AS SOUTH Africa prepares for its 2025 Medium-Term Budget Policy Statement, set to be unveiled on 12 November, key themes are emerging that will impact the nation's financial landscape for years to come.

- ASHLEY LECHMAN

AS SOUTH Africans look ahead to the November announcement, the 2025 budget could signal a turning point in the quest for enhancing tax compliance and ensuring prudent governance, revitalising the economy in the process.

(GCIS)

Central to this fiscal discourse is an intensified focus on revenue collection, tax compliance, and sound governance reforms, all aimed at fostering sustainable economic growth.

According to Itumeleng Nkadimeng, Head of Corporate Tax at KPMG South Africa, the spotlight in the upcoming budget will reside firmly on the South African Revenue Services' (SARS) commitment to enhancing tax compliance.

Nkadimeng told Business Report, "Building on a significant commitment of R7.5 billion announced previously, the government is expected to adopt a modernised approach to tax administration. This strategy will likely introduce deeper audit verifications and a stronger emphasis on transparency regarding beneficial ownership."

Traditionally, the Medium-Term Budget Policy Statement provides insight into tax trends and revenue statistics.

"These figures are more than mere numbers; they represent opportunities to broaden the tax base and implement necessary reforms. This expansion is vital, especially following South Africa's recent removal from the Financial Action Task Force (FATF) grey list, which has brought renewed focus on governance, accountability, and fiscal credibility," Nkadimeng added.