MTBPS: Sars outperforms 2025 Budget expectations

THE South African Revenue Service (Sars) has collected more tax revenue than projected by the National Treasury in the budget tabled in May 2025.

- DIEKETSENG MALEKE

THE South African Revenue Service (Sars) has collected more tax revenue than projected by the National Treasury in the budget tabled in May 2025.

(TIMOTHY BERNARD Independent Newspapers)

According to the Medium-Term Budget Policy Statement (MTBPS) presented by Finance Minister Enoch Godongwana in the National Assembly, Sars collected just over R924 billion in the first half of the 2025/2026 financial year.

“As indicated in the 2025 Budget, an additional R4 billion was allocated to the South African Revenue Service (Sars). This allocation was intended in part to strengthen debt collection, and thereby increase revenue collected, by between R20 and R50 billion per year. We will continue to monitor Sars's revenue performance for the remainder of the year.

"This assessment will inform whether the R20 billion in additional tax increases for the 2026 Budget, as earlier proposed, can be withdrawn. A final decision will be announced in the 2026 Budget,” he said.

Godongwana attributed the improved revenue outlook to lower-than-expected VAT refunds and stronger household expenditure, which boosted value-added tax collections.