https://newsletter.en.creamermedia.com
Africa|Service
Africa|Service
africa|service

South Africa tax agency falling short on extra collections ambition

Finance Minister Enoch Godongwana

Finance Minister Enoch Godongwana

1st October 2025

By: Reuters

  

Font size: - +

South Africa's tax authority is lagging behind projections required to secure an additional R35-billion in revenue, data from the National Treasury revealed, though it is on track to meet its 2025/26 baseline target.

The South African Revenue Service (SARS) has collected approximately R39.3-billion so far this fiscal year, surpassing the R37.5-billion needed to meet its baseline goal of R100-billion, which the debt collection agency achieved in the 2024/25 fiscal year.

However, the collections fall short of the R49.3-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 R20-billion in taxes planned for 2026/27, as the government seeks to contain debt projected to peak at 77.4% of GDP.

Political resistance to tax increases has posed challenges for the minister, who has prioritised maintaining fiscal credibility amid South Africa'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.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Comments

Showroom

Environmental Impact Management Services
Environmental Impact Management Services

EIMS is an independent specialised environmental consulting firm offering the full spectrum of environmental management services across all sectors...

VISIT SHOWROOM 
Weir
Weir

Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

An image showing the Africa Trade Engine launch
Pioneering Africa Trade Engine launched to actualise AfCFTA
14th November 2025 By: Tasneem Bulbulia

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.159 0.564s - 167pq - 2rq
Subscribe Now