10-07-2025
Nearly half of Treasury's R92bn budget to modernise SARS and boost tax efficiency, says Godongwana
Finance Minister Enoch Godongwana says nearly half of Treasury's R92bn budget will go to SARS to modernise tax systems, boost debt collection, and implement e-invoicing for VAT.
Finance Minister Enoch Godongwana says nearly 50 percent of Treasury's R91.83 billion departmental budget over the medium term will go to the South African Revenue Service (SARS), marking a significant investment in modernising the country's tax collection systems.
Speaking during his 2025/26 budget vote speech, Godongwana announced that SARS will receive R45.76 billion, or 49.8% of the Treasury's budget, excluding direct charges, over the next three years.
This is an R8 billion increase from the previous year's allocation.
The funding, he said, is aimed at 'enhancing their ability to collect debt through better systems, increasing staff capacity and modernising their processes to establish e-invoicing for VAT, instant payment systems and upgrades of customs infrastructure.'
He emphasised that this investment must go hand in hand with transparency and accountability. 'To monitor progress and improve transparency, last week we published monthly debt collection data from SARS for the first time,' said Godongwana.
Godongwana said the department's total budget reflects a careful balance between technical and political demands, between macro and microeconomic realities, and between local constraints and global pressures.
'It is a balance between laws, policies and the ongoing journey. We are a nation moving towards a more equal society.'
The Treasury's core focus remains the achievement of sustainable public finances. As part of this goal, the department plans to strengthen infrastructure investment, particularly at the municipal level, and rationalise government programmes through spending reviews.
