14 September 2026 – The South African Revenue Service (SARS) today outlined its vision for the next era of tax administration. The organisation is placing trust, institutional capability, modernisation, and stakeholder partnership at the centre of its strategy to strengthen compliance and support South Africa’s fiscal future. The vision of A Smart Modern SARS with unquestionable integrity admired by all was re-emphasised by Dr Johnstone Makhubu, SARS Commissioner, during his keynote address at the 13th Annual Tax Indaba in Sandton.
Speaking under the theme, “SARS and the Next Era of Tax Administration”, Commissioner Makhubu said revenue collection remains SARS’s mandate, but that long-term success depends on building a trusted, capable, and sustainable institution that makes compliance easier, resolves non-compliance effectively, and responds to the changing needs of taxpayers and traders.
Commissioner Makhubu emphasised that SARS’s success cannot be measured by revenue performance alone. “Revenue sustainability is not only about what is collected, but also how it is collected. It is anchored in the trust, capability, and service that make sustainable revenue possible. A revenue administration must be judged not only by what it collects, but by how it treats taxpayers, how it conducts itself, and whether it earns the confidence of the people it serves.”
Stakeholder Expectations and Future Readiness
The address follows an extensive stakeholder-listening process undertaken during the Commissioner’s first months in office. While this process is ongoing, engagements with taxpayers, tax practitioners, business associations, government stakeholders, international partners, and SARS employees have highlighted four consistent expectations: fairness, professionalism, responsiveness, and impactful partnership.
Commissioner Makhubu noted that South Africa’s tax-administration system remains stable and resilient but cautioned that future success must be actively secured.
“Leadership is not about celebrating today’s performance, but about identifying tomorrow’s risks and acting before they become constraints. SARS’s responsibility is to prepare for the future before the future arrives.”
Strategic Priorities for the Next Era
The presentation highlighted SARS’s progress in recent years, including growth in revenue collection, taxpayer trust, voluntary compliance, service delivery, and employee engagement. Commissioner Makhubu said these gains provide a platform for SARS to pursue a more ambitious agenda focused on accelerating modernisation while getting basics right and strengthening institutional fundamentals.
The strategy is partly anchored in four priorities: capable and ethical employees; accelerated modernisation; sustainable funding; and stronger relationships across the tax ecosystem.
Another key priority for SARS is tackling the illicit economy. Through the whole-of-government approach led by the President’s National Illicit Economy Disruption Programme, SARS aims to disrupt illicit activities that undermine fair competition, threaten jobs, and weaken economic growth. The organisation is using technology and coordinated enforcement to strengthen its response to fraud, tax evasion, and cross-border syndicated financial crime.
Modernisation 3.0
At the centre of this agenda is SARS Modernisation 3.0, which seeks to build an intelligent tax and customs administration platform powered by data, automation, and artificial intelligence, while upholding strong governance and public accountability. Key initiatives include VAT, customs and excise modernisation, intelligent case management, digital identity capabilities, and the use of AI to improve routine processes and service delivery.
While noting the importance of technology and adapting to changing demands, Commissioner Makhubu stressed that technology is not a substitute for people, but a tool to improve outcomes for taxpayers, traders, and SARS employees.
“The future of tax administration is not people versus technology, but it is people and technology working together to make compliance easier, services faster, and enforcement more precise. Technology must strengthen human capability, not replace it.”
The Commissioner also outlined SARS’s long-term ambition of creating an environment in which compliance becomes increasingly embedded in economic activity through digital systems, trusted data, and real-time interactions.
“Our goal is simple: compliance should become the natural outcome of participating in the economy. The easier we make it for honest taxpayers to meet their obligations, the more effectively we can focus on those who deliberately choose not to comply. We want compliance just to happen.”
Partnership with Tax Practitioners
Addressing tax practitioners directly, Commissioner Makhubu called for a new partnership built on shared responsibility for the integrity of the tax system. “The relationship between SARS and tax practitioners must evolve beyond transactions and disputes. We share a common responsibility to protect the integrity of the tax system, improve the taxpayer experience, and strengthen confidence in the rule of law”.
The Commissioner said that the next chapter of SARS must be visible in the experience of taxpayers and traders through better service, clearer processes, faster resolution of legitimate matters, and closer engagement with stakeholders. SARS will continue to use platforms such as Tax Indaba to exchange ideas, hear concerns, and work with stakeholders to improve tax administration.
Conclusion
Concluding his address, Commissioner Makhubu said that South Africa’s fiscal future depends on a trusted tax administration supported by capable people, intelligent systems, sustainable investment, and strong partnerships.
“Revenue is our mandate, but trust is our license to operate. […] Together, we can build a tax administration that serves the country not only today, but for generations to come.”
The Tax Indaba, hosted by the South African Institute of Taxation at The Capital on the Park in Sandton, brings together stakeholders from across the tax profession to examine South Africa’s fiscal position, developments in tax administration, and the role of technology in building a future-ready tax system. The three-day 2026 event is being held under the theme, “From Constraint to Capacity: Turning Fiscal Space into Sustainable Reform”.
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