STEVEN MANN, Cape Town | Thursday 5.30pm.
THE government reaped R7,7-billion rand from privatisation in the 1999/2000 financial year, R3,7-billion more than was orginially budgeted for.
Addressing Parliament, Finance Minister Trevor Manuel said this and favorable lending conditions have enabled the government to cut debt servicing costs to 5,5% of GDP, making more resources available for development.
“For every R1-billion we don’t borrow … we have R150-million more to spend on such things as education, on improving healthcare and on infrastructure.”
Manuel sounded out a warning for people and companies who continue to dodge their tax obligations, saying the Revenue Service will actively prosecute those who defraud the fiscus.
“It will root out tax criminality by targeting for auditing specific industries and companies that have been identified as high risk. Three such industries have been earmarked for this in the near future.”
Manuel said three special new tax courts will be opened this year to prosecute offenders.
An estimated R20-billion which is owed in tax goes uncollected, yet despite this Sars has managed to exceed its revenue collection targets by R25-billion over the past five years.
Manuel said Sars has dismissed 20 officials for bribery and corruption, a clear message to officials that dishonesty will not be tolerated.