21-05-2025
Sars gets R4bn to hire army of debt collectors
Finance minister Enoch Godongwana has allocated R4bn to the South African Revenue Service (Sars) in the current financial year to help it strengthen its capacity to collect more tax revenue.
The tax authority will immediately use the money to hire more than 1,000 debt collectors to claw back up to R50bn per year in revenue owed to Sars.
Godongwana made the announcement when he tabled the 2025/2026 budget in parliament on Wednesday, his third attempt since February.
The two previous budget proposals, the first on February 19 and the second on March 12, were rejected by some ANC ministers, parties in the government of national unity (GNU) including the DA and the Freedom Front Plus, and those outside the GNU including the EFF and MK Party.
They had clashed over Godongwana's proposals to raise VAT, since dumped after the DA and the EFF challenged the matter in court.
Godongwana's latest budget documents show Sars collected R95bn during the previous financial year of 2024/2025.
'Over the medium term expenditure framework (MTEF) period [of three years], the agency will receive an additional R7.5bn relative to the baseline. Part of the allocation is expected to increase debt collection by R20bn to R50bn per year.
'The potential revenue is not included in the revenue estimates. However, the performance of Sars will be monitored by assessing the change in the amount of cash collected, which will be published monthly.'
Godongwana had previously allocated R3.5bn to Sars during the medium budget policy statement in November last year.
The allocations will also see Sars investing in new technology, data science and artificial intelligence to beef up its capacity to collect more money.
Sars commissioner Edward Kieswetter has previously called on National Treasury to allocate it more resources for it to go after tax dodgers.
At a pre-budget briefing, Kieswetter said he would hire up to 1,700 debt collectors to chase billions owed to Sars.
'In April we hired 500. We've used April to train and upskill them. From June 1 we'll bring a further 250 and that takes us to about 750,' Kieswetter said.
Sars was aiming to collect at least R120bn in total tax debt in the MTEF period.
Less for early retirement spending and defence amid DRC withdrawal
Godongwana has reduced allocations to the government's early retirement programme.
The early retirement plan is aimed at reducing the number of public servants by encouraging government employees aged 55 and above to retire early without incurring early withdrawal penalties.
The early retirement package has been cut from R11bn to R5.5bn from this year up to 2027.
'Discussions with organised labour on the process are under way in the Public Service Co-ordinating Bargaining Council (PSCBC). The allocation will be revisited on the conclusion of the consultations as part of the next budget process, though functions that are not parties to the PSCBC process, such as the department of defence, can proceed with implementation.'
Allocations to the department of defence have been cut by R2bn due to the 'expedited schedule for withdrawal' of SANDF troops from the Democratic Republic of the Congo.
