Cape Town – Finance Minister Enoch Godongwana and SARS Commissioner Edward Kieswetter have reportedly dismissed claims of tension between them, attributing the controversy to miscommunication and misleading reports.
Speculation arose from a hot mic incident in during a media briefing on the postponed Budget Speech in February, where Godongwana appeared frustrated with Kieswetter’s public opposition to tax hikes.
Kieswetter had suggested that South Africa should focus on improving tax collection rather than increasing tax rates.
During the media briefing, Godongwana gave a vague response when questioned about the commissioner’s stance.
However, microphones later captured a private conversation between Godongwana, Minister in the Presidency Khumbudzo Ntshavheni, and Treasury Director-General Duncan Pieterse.
In the exchange, Godongwana expressed anger over Kieswetter’s remarks, calling them “rubbish”.
Leaked conversation exposes rift over Tax policy
Finance Minister Enoch Godongwana’s frustration with SARS Commissioner Edward Kieswetter was laid bare in a private exchange caught on a live microphone.
The conversation, which took place after a media briefing today, February… pic.twitter.com/vyhmQ9Ctw6
— MDN NEWS (@MDNnewss) February 19, 2025
Pieterse was heard telling Godongwana, “I’m glad you took the question about the commissioner. You answered it much better than I would have.”
Godongwana replied, “Oh no, I was a bit worried. He is making me angry, even here he comes up with this rubbish.”
The leaked conversation also hinted at deeper political friction, with Ntshavheni asking, “When is he leaving?” in reference to Kieswetter, raising questions about the commissioner’s future.
At the heart of the disagreement was a larger policy clash: Godongwana had been weighing tax increases — including higher VAT and income tax — as potential solutions to South Africa’s R22 billion revenue shortfall and rising government debt, while Kieswetter has emphasised improving SARS’ efficiency to close the gap.
According to EWN, despite the controversy, both Godongwana and Kieswetter have since attempted to downplay tensions. The finance minister confirmed that they had met at least three times to clear the air and align their approach.
“As far as I am concerned, both of us understand that matter is behind us. We are focusing on the job at hand,” the report quoted Godongwana as saying.
Kieswetter also reiterated that his views are consistent with SARS’ mandate.
“My conscience is clear. What I have spoken about is a consistent narrative and in line with the mandate of SARS,” he said.