Cape Town – Finance Minister Enoch Godongwana appeared frustrated with SARS Commissioner Edward Kieswetter’s remarks opposing tax hikes, which suggested that South Africa should focus on collecting uncollected taxes rather than increasing tax rates.
During a briefing on the postponed Budget Speech on Wednesday, Godongwana gave an unclear response when questioned about Kieswetter’s stance.
However, microphones later captured a private conversation where was talking to the Minister in the Presidency Khumbudzo Ntshaveni, and National Treasury director-general Duncan Pieterse, and he expressed anger over the commissioner’s comments, calling them “rubbish”.
Pieterse was heard telling Gondongwana: “I’m glad you took the question about the commissioner. You answered it much better than I would have.”
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
Godongwana replied: “Oh no, I was a bit worried. He is making me angry, even here he comes up with this rubbish. I said, how would it help me on the 19th even now on the 12th? He did not know that we’ve made provision for 3.5 in the new arrangement, but that 3.5 now is gone.”
The disagreement refelcted a larger policy clash, with Godongwana weighing tax increases – such as higher VAT and income tax – as potential solutions to South Africa’s R22 billion revenue gap and escalating government debt.
The leaked conversation also revealed underlying political friction. Ntshavheni was overheard asking, “When is he leaving?” in reference to Kieswetter, hinting at doubts about his tenure.
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Compiled by Betha Madhomu