SARS Gross Tax Revenue Target Revised Upward to R2.144 Trillion

Posted 22 October 2026 Written by Acts Online
Category Tax

Brought to you by SAnews: In terms of the fiscal framework presented in the Medium Term Budget Policy Statement (MTBPS), the gross tax revenue forecast for the 2026/27 financial year has been revised upwards by R17.1 billion, establishing a revised target of R2.144 trillion.

Administered under the South African Revenue Service Act, No. 34 of 1997, the updated R2.144 trillion target represents an increase from the R2.01 trillion net revenue collected in the 2025/26 financial year. The revision is underpinned by collections running ahead of expectations across three primary tax heads governed by the Income Tax Act, No. 58 of 1962 and the Value-Added Tax Act, No. 89 of 1991:

  • Corporate Income Tax (CIT);
  • Dividends Tax; and
  • Value-Added Tax (VAT).

The revised revenue baseline excludes the fuel levy relief announced concurrently in the MTBPS. Operational revenue performance for the financial year to September shows the following yields:

  • Gross collections: R1.231 trillion;
  • Refund payments: R239.1 billion;
  • Net collections: R992.2 billion; and
  • Yield secured through targeted compliance interventions: preliminary R137.7 billion.

SARS has confirmed that meeting the adjusted collection trajectory will require continued administrative enforcement under the Tax Administration Act, No. 28 of 2011, focusing on audit verification, debt recovery, and closing the tax compliance gap.

What this means for you, your business, or your clients

  • For yourself: Ensure personal income tax and provisional tax declarations strictly reconcile with third-party data, as automated risk-profiling tools continue to flag discrepancies.
  • For your business: Anticipate intensified scrutiny and verification requests on VAT201 input claims and Corporate Income Tax deductions, requiring readily accessible supporting documentation and audit trails.
  • For your clients: Advise corporate and individual taxpayers with outstanding disputes or debt to engage proactively through formal suspension-of-payment applications or deferral arrangements under Chapter 10 of the Tax Administration Act, No. 28 of 2011.

Originally published at https://www.sanews.gov.za/south-africa/sars-welcomes-revised-revenue-target

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