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According to the Commissioner of the South African Revenue Services (SARS), Edward Kieswetter, inefficiencies in Eskom’s power supply and logistical challenges at Transnet are causing a loss of more than R200 billion to the fiscus.
Kieswetter also stated that without SARS’s compliance efforts, the revenue shortfall would have been between R20 billion and R25 billion higher.
The National Treasury’s Medium Term Budget Policy Statement from last week reported a R57 billion shortfall in expected revenue, mainly due to reduced mining sector profitability and higher VAT refund payments.
Edward Kieswetter highlighted the need for a focused effort to reconceptualize and fix the energy and logistics challenges, stating that private investment and expertise should be encouraged in the sector. He also expressed optimism that Eskom should stabilize within the next 12 to 24 months.
Video: SARS endures lower revenue shortfall: Edward Kieswetter