21 October 2026 — Dr. Johnstone Makhubu, Commissioner of the South African Revenue Service (SARS), welcomes the revised revenue estimate of R2.144 trillion announced by Finance Minister Mr. Enoch Godongwana in the Medium-Term Budget Policy Statement (MTBPS).
The revised estimate indicates an increase of R17.1 billion compared to the R2.127 trillion February 2026 Budget estimate. This adjustment is despite downward revision of the real GDP growth from 1.6% to 1.2% in 2026. Despite improved electricity reliability which supports economic activity, structural constraints such as logistics and infrastructure challenges continue to hinder South Africa’s growth prospects.
As of 30 September 2026, SARS collected R992.2 billion in net revenue, which includes gross collections of R1.231 trillion and refund payments totalling R239.1 billion. Net revenue was R15.5 billion, or 1.6%, above the February 2026 Budget estimate, and R67.4 billion, or 7.3%, higher than the corresponding period last year.
This performance was supported by stronger Corporate Income Tax, Domestic VAT and PAYE collections, together with lower-than-estimated VAT refund payments.
“The year-to-date outcome demonstrates the resilience of South Africa’s revenue system. However, as reflected in the Minister’s speech, sustainable revenue growth ultimately depends on economic expansion, investment, job creation and broad-based compliance,” Commissioner Makhubu said.
The SARS compliance programme and associated efforts remain central to its Revenue Management Philosophy and to protecting the integrity of the tax and customs system. In the first six months of the financial year, compliance interventions secured a preliminary R137.7 billion, comprising R76.3 billion in direct cash collections and R61.3 billion in prevented revenue leakage.
“Every rand recovered through compliance interventions protects honest taxpayers and strengthens the fiscal framework. Compliance is one of the most effective tools available to safeguard the integrity of the tax and customs ecosystem,” Commissioner Makhubu said.
While the revenue performance for the first six months provides a solid foundation, achieving the revised revenue estimate will require sustained collection and compliance efforts during the remainder of the financial year. Economic conditions, particularly domestic growth and developments in the global economy, will remain important to the revenue outcome.
Revenue in the second half of the 2026/27 financial year is expected to increase by R66.3 billion (6.1%), driven mainly by Pay-As-You-Earn, Corporate Income Tax (CIT) and Domestic VAT. The MTBPS estimate for the second half 2026/27 financial year was revised upward to R1.15 trillion, which is R1.6 billion higher (0.1%), largely due to a R11.7 billion increase in CIT (including Interest). This revision reflects an improvement in profitability of companies which is measured through the Gross Operating Surplus (GOS), which is projected to grow from 3.5% to 5.4%. This GOS growth is premised on the results of the first two quarters, which is 10.7% and 7.0% respectively. Domestic VAT was increased by R2.5 billion, in line with upward revision in household expenditure growth from 5.1% to 6.2%. In addition, the imports growth outlook improved from 6.5% to 11.0%, resulting in a further R2.2 billion increase in Customs duties.
This upward revision reflects the resilience of revenue collections during the first half of the financial year despite a challenging economic environment, characterised by geopolitical tensions, supply chain disruption and increase in energy prices.
The revenue estimate as announced presents a challenge to SARS. However, SARS accepts the challenge and remains committed to its mandate of collecting all revenues that are due, enhancing compliance and facilitating legitimate trade. This will provide government with the resources needed to build a capable state, promote the social and economic development of all South Africans, deliver public services, and support infrastructure development.
SARS notes that the revenue outlook excludes the fuel levy relief announced at the MTBPS by the Minister. This relief reflects our government’s efforts to help South Africans cope with rising fuel costs and its associated cost of living implications.
Commissioner Makhubu said: “The fiscal position demands disciplined execution across the organs of state and a capable, trusted revenue authority that fulfils its mandate firmly, without fear, favour or prejudice. SARS will continue to collect all revenue lawfully due, facilitate legitimate trade and protect the revenue base that funds government’s development agenda.”
Despite the challenging economic environment, SARS has shown resilience in revenue administration.
SARS will therefore continue to strengthen compliance, protect the revenue base and ensure that all revenue lawfully due to the state is collected.
Commissioner Makhubu added: “The Minister has challenged all 14 500 SARS employees to make every effort to collect the resources needed to make South Africa work. I am confident that Team SARS will answer the nation’s call. I thank our employees for their steadfast commitment, and compliant taxpayers and traders for contributing to the development of our country.”
For more information, contact [email protected].
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