Pretoria:South Africa's gross tax revenue forecast for the fiscal year 2026/27 has been revised upwards by R17.1 billion. This adjustment is attributed to stronger-than-expected collections from corporate income tax, dividends tax, and Value-Added Tax (VAT), as announced by Finance Minister Enoch Godongwana.
According to South African Government News Agency, the revised forecast indicates an improved revenue outlook compared to the February estimate. A significant portion of this improvement is due to higher commodity prices, although these gains are expected to dissipate over the medium term. The overall gross tax revenue is projected to increase from R2.14 trillion this year to R2.53 trillion by 2029/30.
During the delivery of the Medium-Term Budget Policy Statement (MTBPS), Minister Godongwana emphasized the continued efforts of the South African Revenue Service (SARS) in strengthening revenue administration and enhancing compliance. He highlighted SARS's crucial role in the government's efforts to combat the illicit economy, particularly focusing on illegal alcohol and tobacco trades.
Through initiatives such as customs and excise modernization, which include enhanced cargo scanning, track-and-trace capabilities, and stronger frontline enforcement, SARS is actively disrupting networks that facilitate illicit trade. The Minister noted that a more detailed update on the National Illicit Economy Disruption Programme would be provided in the next year's Budget.