The South African Revenue Service (SARS) said it accepts a higher revenue target of R2.144 trillion for the 2026/27 financial year, according to SAnews.
SARS Commissioner Dr Johnstone Makhubu welcomed the new estimate. Finance Minister Enoch Godongwana announced it in Parliament on Wednesday during the Medium Term Budget Policy Statement (MTBPS).
The government raised its gross tax revenue forecast for 2026/27 by R17.1 billion. According to SAnews, the increase was driven by stronger collections from corporate income tax, dividends tax and Value-Added Tax (VAT).
The new target is higher than the R2.01 trillion in net revenue that SARS collected in the 2025/26 financial year. SARS described that amount as a record.
The revenue service said the higher target was 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,” SARS said.
SARS said the money would give the government the resources to deliver public services and support infrastructure.
The revenue service also said the forecast does not include the fuel levy relief the minister announced at the MTBPS. SARS said the relief was meant to help South Africans cope with rising fuel costs and the cost of living.
In the year up to September, SARS collected about R992.2 billion in net revenue. This came from gross collections of R1.231 trillion, minus refunds of R239.1 billion.
“The year-to-date outcome demonstrates the resilience of South Africa’s revenue system,” Makhubu said.
He added that lasting revenue growth depends on a growing economy. “Sustainable revenue growth ultimately depends on economic expansion, investment, job creation and broad-based compliance,” he said.
According to SARS, compliance work brought in a preliminary R137.7 billion.
“Every rand recovered through compliance interventions protects honest taxpayers and strengthens the fiscal framework,” Makhubu said.
He said SARS would keep collecting all revenue that is lawfully due. He said the service would also make legal trade easier and protect the money that funds government plans.
Makhubu said the minister had challenged all 14 500 SARS employees to collect the money needed to make South Africa work.
“I am confident that Team SARS will answer the nation’s call,” he said. He thanked SARS staff, as well as taxpayers and traders who follow the rules.
Source: this article is based on reporting by SAnews.gov.za. Image: GCIS via SAnews.gov.za. Written with the help of AI and published by the Tzaneen Voice News desk. See our Editorial Standards.
Kgomotso Maake covers news and politics for Tzaneen Voice. Kgomotso reports on government, Parliament, municipalities, courts, crime and service delivery across South Africa, with a close eye on how national decisions reach towns like Tzaneen and the wider Limpopo province. Stories are written in plain English and focus on the facts: who made the decision, what it means, and what happens next.