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SARS plans to use R6.9 billion to modernise systems

Published

The tax authority will automate VAT assessments and add track-and-trace technology for excisable products. Commissioner Johnstone Makhubu said SARS expects to receive between R4 billion and R4.5 billion of the special appropriation.

The money is meant for the 2026/27 financial year. It will also pay to refresh the ICT infrastructure of the South African Revenue Service (SARS). Makhubu said: "We are using this money to accelerate our modernisation."

Makhubu said SARS plans to introduce track-and-trace technology over the next two to three years. He said it will help identify leakages involving alcohol and tobacco.

SARS is negotiating with National Treasury to roll some of the money over into the following financial year. Makhubu said the investment forms part of efforts to strengthen the capacity of SARS to collect taxes and improve compliance.

Key facts

Who
Johnstone Makhubu (SARS Commissioner); South African Revenue Service (tax authority); National Treasury (government department SARS is negotiating with on rollover of funds)
What
The South African Revenue Service plans to use R6.9 billion in special appropriation funding for modernisation, including VAT assessment automation, track-and-trace technology for excisable products, and ICT infrastructure refresh. SARS expects to receive between R4 billion and R4.5 billion of the appropriation, according to its commissioner.
When
22 October 2026
Where
South Africa
Status
Reported

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