SA's economy showing signs of recovery but 'there’s still a long way to go': Sars commissioner

Despite taking a knock due to the Covid-19 pandemic last year, SA's economy is already showing “encouraging” signs of recovery, but “there's still a long way to go before it can return to pre-Covid levels”.

This was according to SA Revenue Service (Sars) commissioner Edward Kieswetter on Thursday.

Speaking at the launch of the 2021 tax season, the commissioner said the 2021/22 fiscal year started off on a positive note, though from a low base.

“The positive start to the financial year 2021/22 is reflective of continued economic performance in the period of January to March 2021. We remain committed to safeguarding the public’s confidence in our tax administration system during these unprecedented times.

“Collectively we will ensure that the tax administration system of our republic is continuously made accessible to allow taxpayers to fulfil their obligations and to ensure that the tax revenues due are collected,” he said. 

When SA was first hit by the Covid-19 pandemic in March last year, most economic activities were halted as a measure to curb the spread of the Covid-19 pandemic. This resulted in company closures and a jobs bloodbath.

SA is now facing the third wave of infections, about which the commissioner expressed his concern.

“While the impact of the third wave of Covid-19 on the economy is not yet fully understood and presents a downside risk, we will continue to observe and modify our outlook.

“However, for now, the tax revenue outlook for 2021-2022 remains positive,” said Kieswetter.