SOUTH African Revenue Services Commissioner Pravin Gordhan says government is concerned about the growth of small businesses and is doing everything to ensure the sector expands.

Gordhan was in East London to launch the small business tax amnesty imbizos that are expected to be held in all regions throughout the country. The tax pardon will be open to businesses with a turnover of up to R5 million and will give businesses that have failed to comply with the tax laws the chance to start with a clean slate.

The Sars commissioner said it was important for small and medium business operators to pay taxes to enable the government to give them services. Taxes were an important source of revenue for the fiscus.

“There’s no free money in the world. Just like you as businesses, you either make money in the form of profit and then use that money to build your business or alternatively you borrow the money from the bank. They charge you interest and they make sure you pay. If you don’t pay you lose your business.

“Similarly, we on the government side ... those who lend us money can put a very tight squeeze on our country and make it very difficult for government to operate. It’s absolutely essential that all of us, all 45 million South Africans, understand that our government can only deliver what we want from it only if it has money.

“If it borrows too much money then most of the money it collects from you in tax will pay interest on those loans. The government won’t be spending that money on houses and roads and welfare,â€