Cape Town:South African Revenue Service (SARS) Commissioner Dr. Johnstone Makhubu has expressed support for the revised revenue forecast unveiled by Finance Minister Enoch Godongwana during the Medium Term Budget Policy Statement in Parliament.
According to South African Government News Agency, South Africa's gross tax revenue projection for 2026/27 has been increased by R17.1 billion, a revision attributed to stronger-than-anticipated collections from corporate income tax, dividends tax, and Value-Added Tax (VAT). The adjusted revenue target is now set at R2.144 trillion, surpassing the previous R2.01 trillion collected in the 2025/26 financial year.
Despite acknowledging the complexity of the upward revision, SARS is committed to its mission of collecting due revenues, enhancing compliance, and promoting legitimate trade. This effort aims to equip the government with necessary resources for building a capable state, advancing social and economic development, delivering public services, and supporting infrastructure projects. Notably, the revenue outlook does not account for the fuel levy relief announced by the Minister, which is intended to alleviate the rising costs of fuel and its impact on living expenses.
In the current fiscal year up to September, SARS reported net revenue collections of R992.2 billion, with gross collections reaching R1.231 trillion and refund payments amounting to R239.1 billion. Dr. Makhubu highlighted the resilience of South Africa’s revenue system but emphasized that sustainable revenue growth is contingent on economic expansion, investment, job creation, and broad-based compliance.
Compliance interventions have yielded R137.7 billion, reinforcing the integrity of the tax and customs system. Dr. Makhubu affirmed SARS' commitment to collecting all revenue lawfully due and protecting the revenue base that supports the government's development agenda. The Finance Minister has called on all 14,500 SARS employees to strive towards achieving the revenue goals essential for the nation's functioning. Expressing confidence in his team, Dr. Makhubu thanked both SARS employees and compliant taxpayers for their contributions to South Africa's development.