South Africa tax agency falling short on extra collections ambition

South Africa’s tax authority is lagging behind projections required to secure an additional R35-billion in revenue, data from the National Treasury revealed, though it is on track to meet its 2025/26 baseline target.

The South African Revenue Service (SARS) has collected approximately R39.3-billion so far this fiscal year, surpassing the R37.5-billion needed to meet its baseline goal of R100-billion, which the debt collection agency achieved in the 2024/25 fiscal year.

However, the collections fall short of the R49.3-billion needed to stay on course for the higher target aimed at easing fiscal pressures.

Finance Minister Enoch Godongwana has warned that spending cuts may be unavoidable if revenue fails to meet expectations.

Earlier this year, Godongwana said exceeding the target could eliminate the need for an additional R20-billion in taxes planned for 2026/27, as the government seeks to contain debt projected to peak at 77.4% of GDP.

Political resistance to tax increases has posed challenges for the