SARS to collect R300 billion more taxes with national crackdown, and another country evacuates its citizens from South Africa
The rand weakened in early trading on Wednesday due to renewed tensions in the Gulf region, following stalled talks between the US and Iran.
Domestic investors also reacted to a business survey indicating a contraction in economic activity. The rand was trading at 16.30 against the dollar, representing a decline of approximately 0.4% from its previous close.
The US Central Command reported that Iran had launched ballistic missiles toward regional neighbours, but all of the missiles failed to reach their targets.
In response to these attempted attacks by Tehran, American forces conducted strikes on Qeshm Island.
These renewed military actions occurred amidst a stalemate in diplomatic discussions between the US and Iran, contributing to a sombre market atmosphere and strengthening the dollar.
Like many risk-sensitive currencies, the rand often reacts to global developments and has been significantly influenced by changing market sentiment in recent months.
A business survey released on Wednesday indicated that South Africa’s private sector contracted in May, as both output and new orders declined due to rising fuel prices and uncertainty over US-Israeli tensions over Iran.
Despite the challenging business environment, the survey revealed that firms remain optimistic about their outlook for the year ahead. On the Johannesburg Stock Exchange, the Top-40 index was down by 0.4%.
On Thursday, 4 June, the rand was trading at R16.33 to the dollar, R21.93 to the pound, and R18.96 to the euro. Gold is trading lower at $4,480.46 an ounce, while oil prices were at $96.97 a barrel.
5 important things happening in South Africa today
SARS plan to collect R300 billion more taxes: The South African Revenue Service (SARS) is moving forward with its plan to crack down on illicit trade by introducing a product verification system. Illicit trade is estimated to cost South Africa R300 billion in lost tax revenue annually. [Daily Investor]
Another country moves its citizens out of South Africa: Malawi will join other countries in repatriating its nationals seeking to leave South Africa, where attacks on African migrants have been reported in parts of the country. [Newsday]
US hits South Africa with more tariffs: The United States Trade Representative is proposing new tariffs on South Africa and other countries, following a Section 301 investigation launched earlier this year. [BusinessTech]
André de Ruyter explains how Australia can fix South Africa’s high electricity prices: André de Ruyter, former Eskom CEO, noted that South Africa has similar energy resources to Australia. He pointed out that with the right policies, Australia lowered electricity prices by 44% in late 2025 through solar and battery storage. [MyBroadband]
Severe storm warning: The Weather Service has downgraded severe weather alerts for the Eastern and Western Cape from Orange Level 9 to Level 8. Heavy rain is expected to cause flooding and risks to infrastructure and safety. Residents in affected areas should stay vigilant and follow official warnings, as damage has already been reported in parts of the Eastern Cape. [eNCA]
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