Chairperson, the ANC is overcome with a deep sense of sadness on the sudden passing of the ANC stalwart, mama Albertina Sisulu. Ulale ngoxolo, mama. [Rest in peace, mother.]
Allow me to pay tribute to the continued support received from millions of honest taxpayers. Their contributions are reflected in the recovery of tax revenue this year. However, hon Minister, the ANC is concerned about tax and customs evasions. That remains a serious threat. In the same breath, we are not really looking at the bad side only. We also appreciate the working together of the police, the prosecuting authority, financial intelligence and Sars in ensuring that 200 taxpayers were convicted of fraud and tax evasion between September 2010 and February 2011.
The scars and the bruises inflicted by the apartheid system in our country cannot be ignored or forgotten. Indeed, we have forgiven, but the scars have caused an indelible mark. The majority of our people fail to understand the most important matters of our country due to poor literacy levels. Sars is perceived as a cruel and unfair institution. Due to this lack of knowledge, people fail to understand what their responsibility is towards Sars.
Without tax revenue, the government cannot do its job. The state needs our tax rands to fund social and economic programmes and to provide the public with goods and services, such as schools, universities, hospitals, clinics and roads, as well as defence and security.
The ANC acknowledges the hard work that has been done by Sars to turn around the culture of noncompliance into one of voluntary compliance and increasing the tax base, while reducing the cost of collection. Improved service delivery and more effective enforcement of tax legislation are two pillars of the Sars compliance strategy.
The ultimate goal is to reduce the tax gap, which is the difference between the tax collected and the tax due. The ANC calls on all parties to ensure that we educate our constituencies on the responsibilities and role of Sars, and also on companies to develop a culture of behavioural values. There is the saying, Nika uKhesara okuka Khesara. [Render unto Caesar what is Caesar's.] So, we need to do so.
Sars, as an institution, is an important capacity for the building of an efficient and effective developmental state, envisaged by the ANC. Central to a developmental state is the capacity and ability to intervene in the economy, using the strategic policy and institutional levers at its disposal to effect the change.
The ANC's conceptualisation of a developmental state is:
It will guide national economic development and mobilise the domestic and foreign capital and other social partners to achieve the goal of ensuring that every South African, especially the poor, experience an improving quality of life.
Within this context, Sars has to play an important role in the mobilisation of the resources that will enable a developmental state to achieve its goals.
In conclusion, all citizens meet their commitment to democracy by obliging to pay their fair share of taxes as and when they fall due. This new morality symbolises a commitment to democratic governance to which every South African must voluntarily subscribe.
Revenue collection is a frontier which enables the ANC government to implement its programme of nation-building and to implement the agenda of a national democratic state within a developmental state. The ANC supports Budget Vote No 10.