Can Sars deliver tax relief?

BUDGET 2026: REVENUE SERVICE UNDER PRESSURE TO AVERT TAX HIKES AND BRING RESPITE

- Amanda Visser

JOB DONE? Fingers crossed that Sars Commissioner Edward Kieswetter, right, and his team have done enough to keep Finance Minister Enoch Godongwana from wanting more from taxpayers.

(Reuters)

One thing most South Africans do not want this year is three budgets. What they likely want is some tax relief.

But if the promises of improved tax collections by the SA Revenue Service (Sars) do not materialise, taxpayers will probably be faced with additional tax measures.

The 2026 budget speech will be delivered on Wednesday, 25 February, with all eyes on Sars to see whether the tax increases pencilled in during last year's budget can be averted.

The ANC in the government of national unity actively pressed for an increase in the value-added tax (VAT) rate, trying to plug revenue shortfalls of around R20 billion, due to persistent public spending, low economic growth and rising debt.

National Treasury allocated an additional R7.5 billion over the medium term for Sars to build human and technological capacity to enhance compliance and increase debt collection by R20 billion to R50 billion a year.

During the medium-term budget policy statement in November last year, Finance Minister Enoch Godongwana revised the gross tax revenue estimate for the current tax year up by R19.7 billion to just over R2 trillion.