South African Revenue Service (SARS) Commissioner, Dr Johnstone Makhubu, has welcomed the revised revenue estimate announced by Finance Minister Enoch Godongwana during the Medium Term Budget Policy Statement in Parliament on Wednesday.
South Africa’s gross tax revenue forecast for 2026/27 has been revised upwards by R17.1 billion, supported by stronger-than-expected collections from corporate income tax, dividends tax and Value-Added Tax (VAT).
The revised revenue target is set at R2.144 trillion, up from the historic R2.01 trillion net revenue collected in the 2025/26 financial year.
SARS noted that the upward revision presents a “challenge”.
“However, SARS accepts the challenge and remains committed to its mandate of collecting all revenues that are due, enhancing compliance and facilitating legitimate trade.
“This will provide government with the resources needed to build a capable state, promote the social and economic development of all South Africans, deliver public services, and support infrastructure development.
“SARS notes that the revenue outlook excludes the fuel levy relief announced at the MTBPS by the Minister. This relief reflects our government’s efforts to help South Africans cope with rising fuel costs and its associated cost of living implications,” the revenue service stated.
Strong showing
In the year up to September, the revenue service collected some R992.2 billion in net revenue, including gross collections of R1.231 trillion and refund payments totalling R239.1 billion.
“The year-to-date outcome demonstrates the resilience of South Africa’s revenue system.
“However, as reflected in the Minister’s speech, sustainable revenue growth ultimately depends on economic expansion, investment, job creation and broad-based compliance,” Makhubu said.
Furthermore, compliance interventions secured a preliminary R137.7 billion.
“Every rand recovered through compliance interventions protects honest taxpayers and strengthens the fiscal framework. Compliance is one of the most effective tools available to safeguard the integrity of the tax and customs ecosystem,” the Commissioner noted.
He expressed confidence in SARS’ ability to ensure that all revenue due to the state is collected.
“The fiscal position demands disciplined execution across the organs of state and a capable, trusted revenue authority that fulfils its mandate firmly, without fear, favour or prejudice. SARS will continue to collect all revenue lawfully due, facilitate legitimate trade and protect the revenue base that funds government’s development agenda.
“The Minister has challenged all 14 500 SARS employees to make every effort to collect the resources needed to make South Africa work. I am confident that Team SARS will answer the nation’s call. I thank our employees for their steadfast commitment, and compliant taxpayers and traders for contributing to the development of our country,” Makhubu stated. – SAnews.gov.za
