SARS targets R2.144 trillion in tax revenue for 2026/27
SARS Commissioner Dr Johnstone Makhubu says the revenue service is committed to meeting the revised R2.144 trillion target after stronger-than-expected tax collections prompted an upward adjustment in the 2026/ 27 forecast.
The South African Revenue Service (SARS) has welcomed the upward revision of the country’s 2026/ 27 gross tax revenue forecast by R17.1b, following stronger-than-expected collections from corporate income tax, dividends tax and Value-Added Tax (VAT).
Finance Minister Enoch Godongwana announced the revised estimate during the Medium Term Budget Policy Statement (MTBPS) in Parliament on Wednesday, October 21.
The new revenue target stands at R2.144 trillion, compared with the R2.01 trillion in net revenue collected during the 2025/ 26 financial year.
SARS Commissioner Dr Johnstone Makhubu said the revised target presented a challenge, but the revenue service remained committed to collecting all revenue legally due to the state, improving tax compliance and facilitating legitimate trade.
In a statement, SARS said the additional revenue would help government fund public services, infrastructure development and initiatives aimed at supporting South Africa’s social and economic development.
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The revenue service also noted that the revised outlook excludes the fuel levy relief announced by Godongwana during the MTBPS. The relief is intended to help South Africans manage rising fuel costs and the associated cost-of-living pressures.
SARS reports R992.2bn in net revenue
SARS collected R992.2b in net revenue in the six months to September. This included gross collections of R1.231 trillion and refund payments totalling R239.1b.
Makhubu said the year-to-date figures demonstrated the resilience of South Africa’s revenue system, while emphasising that sustainable revenue growth depended on economic expansion, investment, job creation and broader tax compliance.
Compliance interventions had also secured a preliminary R137.7b, according to SARS.
“Every rand recovered through compliance interventions protects honest taxpayers and strengthens the fiscal framework,” Makhubu said.
He added that compliance remained one of the most effective ways to protect the integrity of the country’s tax and customs system.
SARS commits to meeting revised target
Makhubu expressed confidence in the revenue service’s ability to collect the revenue required to fund government programmes and priorities.
He said achieving the revised target would require disciplined execution across government and a capable, trusted revenue authority that fulfilled its mandate without fear, favour or prejudice.
SARS will continue focusing on collecting all revenue legally due, facilitating legitimate trade and protecting the tax base that supports government’s development agenda.
Makhubu said Godongwana had challenged SARS’ 14 500 employees to make every effort to collect the resources needed to support the country.
He expressed confidence that the organisation’s employees would respond to the challenge and thanked SARS staff, compliant taxpayers and traders for their contributions to South Africa’s development.
