The South African Revenue Service (SARS) has collected approximately 39.3 billion Rand ($2.3 billion) so far this fiscal year, surpassing the R37.5 billion ($2.2 billion) needed to meet its baseline goal of R100 billion ($5.9 billion), which the debt collection agency achieved in the 2024/25 fiscal year.
However, the collections fall short of the R49.3 billion ($2.9 billion) needed to stay on course for the higher target aimed at easing fiscal 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 20 billion rand in taxes planned for 2026/27, as the government seeks to contain debt projected to peak at 77.4% of Gross Domestic Product.
Political resistance to tax increases has posed challenges for the minister, who has prioritized maintaining fiscal credibility amid SA’s economic strains. SARS’s published figures include monthly cash collection profiles to track progress against targets.
Godongwana will present the nation’s medium-term budget policy statement in November.
–Reuters–
