Transfer of customs collection to proposed Border Management Agency
14 March 2017
Business Leadership South Africa (BLSA) has come out against the South African Revenue Services’ (SARS) proposed transfer of customs functions to a new Border Management Agency, which is currently being carried out at country’s border posts. SARS must remain the responsible agency for customs and excise.
BLSA said that Business has consistently opposed the separation of customs collections, which comprise some 30% of the country’s total revenue collection, from the administrative control of SARS. As reflected in the Minister’s Budget Speech in February, customs and excise administration are integral functions of our revenue system. The Davis Tax Committee has recommended that it would be imprudent to fragment customs administration and customs collection.
BLSA has several concerns regarding the risks the proposed transfer.
In summary, these are: