Lasizwe Dambuza criticises Sars' tax on influencers

Television personality and content creator Lasizwe Dambuza has spoken out against the South African Revenue Service’s (SARS) decision to tax influencers.

According to "Sunday World", Dambuza has argued that the move is unfair to many creators who are already struggling to earn a steady income. 

He added that while many people may assume influencers live a glamorous lifestyle, the reality is often far from that.

“Being an influencer is not as glamorous as people think. It’s actually very tough to navigate this world, and even harder to reach a point where you can confidently invoice and charge for your work. 

“Every single day, influencers are negotiated down, and it’s ironic because when you walk into a store like Pick n Pay to buy bread, you’d never ask to negotiate the price. Yet, in this industry, our value is constantly questioned,” he explained.

The “Awkward Dates” host also pointed out the high costs influencers face when attending events or producing content. 

According to him, many creators spend more than they earn, covering expenses such as makeup, transport or outfits, sometimes for unpaid appearances. 

“Sometimes you’ll maybe get a goodie bag, and now even that is seen as taxable,” he said.

In the new age of digital content creation, influencers have managed to secure brand deals that pay them enough money to sustain a glamorous lifestyle and an opportunity to live quite comfortably, if done smartly. 

There are content creators such as Sabelo Hadebe, fondly known as Sabelo the Kreator, who have managed to change their family’s lives along with their content creation, which started with Sunday vlogs. 

Hadebe’s vlogs showcase his Sunday routine of thoroughly cleaning his apartment and cooking hearty meals.

His relatable content soon caught the attention of major brands, leading to partnerships that eventually enabled him to build a home for his family.

In an interview with the "Daily Sun", the influencer shared that he began creating content after moving to Johannesburg to pursue his Marketing studies.

For Dambuza, not every creator has the same success story.

His criticism follows SARS’ recent statement making it clear to influencers that all forms of income are taxable. 

This includes not only cash but also products, services and sponsored perks received in exchange for creating content. 

SARS has stressed that the aim is not to punish creators but to ensure that everyone contributes their share of tax.

SARS Commissioner, Edward Kieswetter, explained that influencers are considered a distinct group of taxpayers and that their cases will be handled in line with existing income tax rules.

Kieswetter added that the revenue service plans to provide educational tools, seminars and webinars to help creators understand their obligations.

Prior to this announcement, Kieswetter had given influencers a warning to get their tax affairs in order, as they will be contributing taxpayers. 

"IOL News" previously reported that SARS is looking into undeclared income that is generated from content creation and brand deals.

According to SARS, they are working to recover about R513 billion in unpaid taxes and they stand firm in their decision as they will not back down until they meet the revised revenue target of R1.84 trillion for the 2024 and 2025 financial year, which was set by Finance Minister Enoch Godongwana.

Dambuza, however, believes that the focus should be on supporting young creatives rather than burdening them further.

“I really empathise and sympathise with content creators who are not making real money from this work, and now they’re expected to pay tax just to be content creators."

"That’s heartbreaking. Instead of making their journey harder, I wish more energy were put into creating opportunities that uplift and support young creatives in this space,” he said.