[South Africa] Potential tax clampdown to tackle shrinking taxpayer base

In South Africa, a shrinking taxpayer base could force the South African Revenue Service (SARS) and the National Treasury to increase enforcement, raise taxes, or consider new measures such as a wealth tax, putting greater pressure on remaining taxpayers and businesses, Daily Investor reports.

According to Tax Consulting SA, pressure is building on the nation’s already narrow pool of taxpayers. Now, new concerns have arisen about the projected decline of nearly 200,000 taxpayers in 2026/27.

The government could face difficult choices, from tightening enforcement to increasing taxes, or even reconsidering a wealth tax to plug the fiscal gap.

SARS reportedly expects to collect R844 billion in personal income tax in 2026/27, rising to R947 billion in the outer year of the medium-term framework.

According to the National Treasury, the number of registered taxpayers is expected to decline by 196,721 to around 14.25 million in the 2026/27 tax year.

Source: Daily Investor

In South Africa, a shrinking taxpayer base could force the South African Revenue Service (SARS) and the National Treasury to increase enforcement, raise taxes, or consider new measures such as a wealth tax, putting greater pressure on remaining taxpayers and businesses, Daily Investor reports.

According to Tax Consulting SA, pressure is building on the nation’s already narrow pool of taxpayers. Now, new concerns have arisen about the projected decline of nearly 200,000 taxpayers in 2026/27.

The government could face difficult choices, from tightening enforcement to increasing taxes, or even reconsidering a wealth tax to plug the fiscal gap.

SARS reportedly expects to collect R844 billion in personal income tax in 2026/27, rising to R947 billion in the outer year of the medium-term framework.

According to the National Treasury, the number of registered taxpayers is expected to decline by 196,721 to around 14.25 million in the 2026/27 tax year.

Source: Daily Investor