National Treasury has allocated R3 billion to the South African Revenue Service (SARS) for modernization efforts aimed at enhancing revenue collection.
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Finance Minister Enoch Godongwana announced in his budget speech that SARS will receive a total of R7.5 billion over the next three years, with R3.5 billion allocated for the current financial year.
This funding will be used to acquire digital tools that improve tax collection.
“For modernization, the [standing] committee [on finance] supports the allocation of an additional R3 billion… This investment should facilitate digital upgrades, automation, and improvements in taxpayer services and compliance efforts,” National Treasury stated in its budget review documents.
Treasury emphasized the growing importance of digital tools and technical skills in maximizing revenue collection, noting a direct correlation between previous digital project funding and increased revenue.
This allocation builds upon prior funding increases, including R1 billion in the 2023 adjustment budget and R1 billion annually for the 2024/2025 and 2025/2026 financial years. The medium-term budget policy statement also allocated additional funding for capital projects and revenue-raising capabilities.
Beyond digital projects, SARS has also been allocated R1.5 billion to hire 2,338 additional resources.
“Strengthening SARS’s human resources is vital for improving service delivery, enforcing compliance, and effectively utilizing data analytics in tax administration,” Treasury stated.
