The SA Revenue Service (Sars) is lagging behind projections required to secure an additional R35bn in revenue, data from the Treasury shows, though it is on track to meet its 2025/26 baseline target.
Sars has collected about R39.3bn so far this fiscal year, surpassing the R37.5bn needed to meet its baseline goal of R100bn, which the service achieved in the 2024/25 fiscal year.
However, the collections fall short of the R49.3bn needed to stay on course for the higher target aimed at easing financial 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 R20bn 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 minister, who has prioritised maintaining fiscal credibility amid the country’s economic strains. The tax authority’s published figures include monthly cash collection profiles to track progress against targets.
Godongwana will present the medium-term budget policy statement (MTBPS) in November.
Reuters
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