Pretoria: President Cyril Ramaphosa has commended the South African Revenue Service (SARS) as essential to the nation's democratic and economic development, hailing it as 'the engine room of the South African state'. The President made these remarks during an oversight visit to the SARS National Command Centre in Brooklyn, Pretoria, where he was updated on the organisation's operations and modernisation efforts.

According to South African Government News Agency, President Ramaphosa highlighted the crucial role SARS plays in building a capable state and sustaining democracy. He noted that the organisation is central to funding public services, infrastructure development, and fostering inclusive economic growth. "The South African Revenue Service occupies a unique and critical role in the life of our nation; it is at the heart of our efforts to build a capable state," the President stated.

He further emphasized that by enhancing compliance, SARS ensures the government has the necessary resources for public services, infrastructure investments, and inclusive growth. Since its inception in 1997, SARS has collected over R23 trillion in tax revenue, contributing significantly to sustaining South Africa's democracy.

President Ramaphosa praised SARS for its embrace of innovation, which positions it at the forefront of global tax administration best practices. He cited public trust in SARS, which has notably increased from 48 percent to 75 percent in five years, as a testament to its improved business and investor confidence.

The President linked the performance of SARS to South Africa's recent sovereign credit rating upgrade, highlighting strong tax receipts as a contributing factor. Additionally, he acknowledged SARS' role in South Africa's removal from the Financial Action Task Force grey list last year.

Reflecting on past challenges, President Ramaphosa noted that SARS, like other state institutions, was severely impacted during the state capture era. However, he commended the organisation for implementing recommendations from the Nugent Commission of Inquiry and its ongoing transformation.

While acknowledging signs of economic recovery, President Ramaphosa noted the challenges in revenue collection amid slow growth and rising living costs. He stressed the importance of SARS in supporting the government's priorities of inclusive growth and poverty reduction.

The President welcomed the launch of Project AmaBillions, aimed at recovering R300 billion in outstanding taxes, and reiterated SARS' role in combating corruption and illicit economic activity. He expressed appreciation to SARS staff for their challenging work in enforcing tax compliance.

In his concluding remarks, President Ramaphosa praised SARS Commissioner Edward Kieswetter for restoring the organisation's credibility and integrity. He expressed confidence in SARS' continued progress and effectiveness in navigating future challenges.