Pretoria: The South African Revenue Service (SARS) has committed to accelerating efforts to collect all debt in order to boost revenue collection. This announcement follows Finance Minister Enoch Godongwana’s Budget Speech, which projected a revenue estimate of approximately R1.986 trillion for the 2025/26 financial year.

According to South African Government News Agency, SARS acknowledged the funding challenges faced by the country and reiterated its commitment to serving the nation with integrity and efficiency. The revenue service emphasized its vital role in collecting revenues that support public services and accepted the responsibility to meet the financial targets set by the Finance Minister.

SARS described the revenue target as challenging due to the difficult domestic and global economic conditions. The South African economy’s growth projections have been revised down from 1.9% in March to about 1.5%. The organization stated that the revenue estimate requires SARS to implement revenue-raising initiatives, with a focus on accelerating debt collection, particularly undisputed debt. SARS recognized the economic difficulties South Africa faces and the impact these may have on debt collection efforts.

SARS outlined its mandate, highlighting its focus on revenue collection, compliance enhancement, and facilitation of legitimate trade. The agency emphasized the importance of analyzing economic performance and its impact on tax and customs revenue collections. By implementing its compliance program, SARS aims to collect all revenue due to the fiscus.

To achieve the revised revenue estimate, SARS plans to refine and utilize advanced data analytics and artificial intelligence to detect tax-compliance risks and improve compliance rates. By integrating expanded third-party data sources, the system can automate tax assessments and effectively identify underreported income, enhancing efforts to combat tax evasion. SARS also aims to combat the illicit economy by targeting high-revenue sectors such as tobacco, alcohol, and fuel, and by broadening the tax base through the identification and registration of previously untaxed individuals and businesses.

SARS Commissioner Edward Kieswetter stated that the increased revenue estimate necessitates that SARS ‘do more to realize a better life for all South Africans.’ He highlighted SARS’s transformative role in funding approximately 90% of government expenditure, which is essential for the provision of social services. Kieswetter concluded by expressing SARS’s responsibility to meet these objectives with humility and determination.