The South Africa Revenue Service (SARS) is intensifying its efforts to recover tax debts from South Africans across the board as part of a new initiative, known internally as 'Project AmaBillions', after the government failed to win sufficient support for its proposal for a rise in VAT.
Targeting revenues of ZAR2.006 trillion for the 2025/26 fiscal year, SARS plans to onboard up to 500 new employees initially to enhance its capacity to tackle undisputed tax debts. It is aiming to recuperate an estimated ZAR70 billion to significantly offset the forecasted ZAR75 billion shortfall cited by the National Treasury over the medium term.
SARS Commissioner Edward Kieswetter has repeatedly stressed the importance of a dedicated compliance programme to trace and address over five million unsubmitted returns, focusing on individuals who are above the income threshold but remain unregistered for tax purposes.
This focus on existing tax debts is viewed as a preferable alternative to imposing new taxes within an already fragile economic environment, with the overarching aim of bolstering state resources through diligent tax compliance and recovery efforts. SARS's compliance initiatives generated ZAR301 billion in the 2024/25 fiscal year, a 16% increase in revenue.
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