The South African Revenue Service (SARS) has committed to intensifying its debt collection efforts as part of a broader strategy to meet the newly announced revenue estimate of R1.986 trillion for the 2025/26 financial year, as outlined by Finance Minister Enoch Godongwana in his Budget Speech on Wednesday.
In a statement released following the budget announcement, SARS acknowledged the fiscal challenges facing the country and reaffirmed its responsibility in supporting national development through effective revenue collection.
‘Serve the nation’
“SARS recognises the funding challenges that the country faces. We are steadfast in our commitment to serve the nation with integrity and efficiency,” the agency said.
“We accept the responsibility to achieve the 2025/26 revenue estimate presented by the Finance Minister.”
Describing the target as “a challenging estimate” due to both domestic and global economic headwinds – including a lowered GDP growth projection from 1.9% to 1.5% – SARS stated that it would escalate initiatives to raise revenue, with a particular focus on the collection of undisputed tax debt.
To meet its goals, SARS outlined several key strategies:
SARS Commissioner Edward Kieswetter emphasised the organisation’s crucial role in sustaining public services.
“SARS plays a transformative and catalytic role in funding about 90% of government expenditure, which is essential to the delivery of old age pensions, health services, and social welfare,” Kieswetter said.
“It is a responsibility we embrace with humility, and we will endeavour to achieve.”
With economic pressures mounting, SARS’ ability to meet its revenue target will be a key factor in the government’s capacity to deliver essential services and drive inclusive growth.
With SARS given a tough assignment, are you worried at all?
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