South Africa

A legacy of transformation — Pravin Gordhan was the architect of South Africa’s fiscal renaissance

19 Sep 2024

Pravin Gordhan’s work at Sars was nothing short of revolutionary. He took a system that had for generations been a tool of oppression and transformed it into a cornerstone of democratic governance.

In the early hours of 13 September 2024, South Africa lost one of its most formidable public servants. Pravin Gordhan, a stalwart of the anti-apartheid movement and a key architect of South Africa's post-apartheid fiscal system, passed away at the age of 75.

As we reflect on his legacy, it’s crucial to recognise the pivotal role he played in transforming South Africa’s tax system from an instrument of oppression to a cornerstone of democratic governance.

From colonial oppression to apartheid’s shadows

To truly appreciate Gordhan’s contributions, we must first understand the dark history of South Africa’s fiscal system under both colonial and apartheid rule. For more than a century, taxation was weaponised against the black majority, used not just as a means of revenue collection, but also as a tool for social engineering, labour control and racial oppression.

The roots of this oppressive system can be traced back to the 1800s during the mineral revolution. British imperialists ingeniously used taxation as a mechanism to control the behaviours and movements of black Africans, while simultaneously developing a cheap mining labour force.

The introduction of hut and poll taxes forced black Africans into the cash economy, compelling them to seek employment in mines and on white-owned farms to pay these imposed levies.

One particularly egregious example was the 1905 poll tax, which taxed only black households based on the number of adults over 18 years old residing in a single hut, regardless of family relations. This was in addition to the existing hut tax, creating a double burden on black families. The oppressive nature of these taxes sparked widespread resistance, including the Bambatha Rebellion of 1906.

The apartheid regime, building on this colonial legacy, further entrenched the use of taxation as a means of control. The infamous pass system, which restricted the movement of black South Africans, was intrinsically linked to tax compliance. Those who defaulted on their taxes could not leave their designated territories, effectively trapping them in a cycle of poverty and exploitation.

In the 1940s, the apartheid government formalised even more regressive tax liabilities against black South Africans, including taxes on education, grazing rights, and even dog ownership. Failure to pay these taxes could result in imprisonment for black Africans, while no such sanctions were applied to other racial groups.

This system of fiscal oppression created a deeply fractured relationship between the state and the majority black South African population. Taxation, instead of being a civic duty contributing to the common good, became synonymous with subjugation and racial inequality.

Gordhan’s vision: tax as an instrument of democracy

It was into this fractured system that Pravin Gordhan stepped, armed with a vision for transformation and an unwavering commitment to justice.

Gordhan understood that to build a truly democratic South Africa, the tax system needed to be completely reimagined. It had to shift from being a tool of oppression to becoming an instrument of equitable development and nation-building.

Gordhan’s most significant contribution came in 1999 when he took the helm of the newly established South African Revenue Service (Sars). This wasn’t just a rebranding of the old tax collection machinery; it was a complete reimagining of the relationship between the state and its citizens through the lens of taxation.

Under Gordhan’s leadership, Sars became a beacon of efficiency and innovation in the public sector. He championed a strategy that focused on improving taxpayer perceptions, expanding the tax base, and reducing tax avoidance.

But more than that, he understood that for Sars to succeed, it needed to heal the deep wounds left by decades of discriminatory tax policies.

Gordhan’s approach was multifaceted:

Education and transparency: Sars launched extensive campaigns to educate the public about the role of taxation in a democratic society. For the first time, many South Africans were shown how their tax contributions directly funded public services and development initiatives.

Simplification and accessibility: Gordhan pushed for the simplification of tax laws and procedures, making compliance easier for ordinary citizens. This was in stark contrast to the deliberately complex and opaque systems of the past.

Fairness and equity: Under Gordhan’s leadership, Sars focused on ensuring that the tax burden was distributed fairly across society. This included cracking down on tax evasion by wealthy individuals and corporations, sending a clear message that in the new South Africa, everyone would pay their fair share.

Service-oriented approach: Sars was transformed from a punitive institution to a service-oriented one. Gordhan instituted customer service training for Sars employees and set up easily accessible help centres, transforming the public’s experience of interacting with the tax authority.

Technology as a tool for transformation

One of Gordhan’s most forward-thinking initiatives was the extensive use of technology to modernise tax administration. The introduction of e-filing, automated systems, and data analytics not only made tax compliance easier, but also more transparent.

This technological leap forward was more than an administrative upgrade; it was a powerful statement about the new South Africa – one where the tax system would serve all citizens equally and efficiently.

By leveraging technology, Gordhan not only improved efficiency but also reduced opportunities for corruption and bias in tax administration. The automated systems didn’t discriminate based on race or social status, reinforcing the principle of equality before the law.

Building trust in a fractured society

Perhaps Gordhan’s greatest achievement was in changing the narrative around taxation in South Africa. Under his guidance, Sars worked tirelessly to demonstrate the link between tax compliance and social development. This approach helped to foster a culture of voluntary compliance, turning what was once seen as an oppressive duty into a civic responsibility.

Gordhan understood that trust was the cornerstone of a functional tax system. He instituted unprecedented levels of transparency in Sars operations, regularly publishing detailed reports on revenue collection and allocation.

This openness, combined with visible improvements in public services funded by tax revenue, began to heal the deep-seated mistrust between the state and its citizens.

A legacy of transformation

Gordhan’s work at Sars was nothing short of revolutionary. He took a system that had for generations been a tool of oppression and transformed it into a cornerstone of democratic governance. Under his leadership, Sars became a symbol of the new South Africa – efficient, transparent, and committed to serving all citizens equally.

The impact of his work extended far beyond increased revenue collection. By reforming the tax system, Gordhan played a crucial role in redefining the social contract between the South African state and its citizens.

He showed that public institutions could be forces for positive change, working in service of the people, rather than as instruments of control.

As South Africa continues to grapple with the legacies of its past and the challenges of its future, Gordhan’s transformative work at Sars stands as a powerful example of what can be achieved. His legacy reminds us that even the most entrenched systems of oppression can be dismantled and rebuilt to serve the cause of justice and equality.

In honouring Gordhan’s memory, we must commit to continuing his work of building a fair, efficient, and truly democratic fiscal system.

This is not just about collecting taxes; it’s about fostering a society in which every citizen feels valued, heard, and invested in the common good. That was Pravin Gordhan’s vision, and it remains our challenge and our opportunity. DM

Liezil Cerf is the GCIS (Government Communication and Information System) Director of Parliamentary and Media Liaison.

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