Officials from National Treasury and the South African Revenue Service (SARS) today briefed Parliament’s Standing Committee on Finance on South Africa’s proposals to review the Southern African Customs Union (SACU) revenue sharing formula.
South Africa is the single biggest contributor to SACU payments. SACU has existed since 1910 and is the oldest Customs Union in the world comprising South Africa, Swaziland, Botswana, Namibia and Lesotho.
South Africa’s view is that the current revenue sharing arrangement is unsustainable, is exposed to volatility in economic cycles which affects revenue sharing forecasts and budgets of SACU members and encourages too much dependency on South Africa.
SACU payments to the Botswana, Lesotho, Namibia and Swaziland (BLNS) is seen increasingly by the SA public and Parliament as a fiscal burden.
In 2008/09 South Africa contributed R45 billion to the common revenue pool which represented 98% of SACU transfers.
Attached is the National Treasury and SARS submission to the standing committee.
Enquiries:
Adrian Lackay
Cell: 083 388 2580
