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Sunday Independent reports that SA Revenue Service (SARS) commissioner Edward Kieswetter told unions representing its employees that the taxman’s funding deficits had forced him not to fully increase salaries by 6.2%.
This emerged in papers filed at the North Gauteng High Court after SARS made a U-turn on its earlier decision to withdraw its appeal of Judge Elizabeth Kubushi’s ruling forcing the tax collector to honour the last leg of a three-year wage increase agreement signed in April 2019. Sobantu Ndlangalavu, head of employee relations and labour at SARS, explained in the taxman’s now reinstated application for leave to appeal Judge Kubushi’s judgment that the requisite funds were not available to fund full implementation of the wage agreement. He indicated that Sars had a funding deficit ranging between R2.355bn for the 2022/23 financial year to R3.537bn for the 2024/25 financial year. Ndlangalavu said engagements with the Public Servants Association (PSA) and the National Education, Health and Allied Workers’ Union (Nehawu) had been held in an attempt to reach a settlement agreement with both of the unions and it had only reinstated its application for leave to appeal after the settlement talks had broken down. According to SARS, the wage agreement was invalid and unlawful as it was non-compliant with the Public Finance Management Act. The PSA indicated that it had filed its notice of intention to oppose the matter and now has 15 court days to deliver its answering affidavit.
- Read the full original of the report in the above regard by Loyiso Sidimba at Sunday Independent
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