At the South African Institution of Taxation's SAIT's annual Tax Indaba on 9 September, SARS Commissioner Edward Kieswetter highlighted the potential benefits of a unique digital identifier UID system for South Africa, Cape town Etc reports.
He argued that such a system could close numerous tax loopholes and reduce corruption across the revenue chain.
Kieswetter noted that internationally, revenue services are increasingly investing in administrative improvements for tax collection, which have proven effective. However, he pointed out that South Africa still has significant gaps and opportunities for tax laws to be exploited and for corruption to infiltrate.
He cited various government platforms like SARS, UIF, NSFAS, and SASSA as examples where abuse and corruption risks exist. According to Kieswetter, implementing a UID system with an accompanying card usable across all government services would mitigate many of these risks.
Former finance minister Trevor Manuel supported this idea, referencing Indias Aadhaar card as a successful digital system. Aadhaar, a 12-digit identifier, stores residential, contact, and biometric details, enabling authentication through fingerprints or iris recognition. This system facilitates direct transfers of state subsidies to bank accounts linked to the Aadhaar number, ensuring efficient delivery and targeting.
