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. Picture: Esa Alexander/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 South African 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 more than R2 trillion. He said if collections remained strong the proposed additional tax measures (the R20 billion for 2026) could be withdrawn, emphasising reliance on better enforcement rather than new hikes to support fiscal sustainability.
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However, just before December National Treasury published a discussion paper proposing the introduction of a 20% online gambling tax – with claims that it could bring in an additional R10 billion for the fiscus. The gambling industry did not take too kindly to the discussion document, saying there was no consultation with prominent stakeholders and that there might be constitutionality issues. The document proposes that all providers of online betting and interactive gambling – licensed or not in SA – pay a 20% national tax on their gross gaming revenue (GGR).
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