Budget 2026: Do We Expect Tax Hikes?
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With the Budget Day set for 25 February, the big question is: Will SARS collect enough tax to avoid raising VAT or introducing new taxes?
With government spending is still remaining high, the economy is growing slowly, and debt levels are rising, government relies heavily on SARS to step up collections, not just by chasing unpaid taxes, but by tightening the rules and widening the tax net. Here’s what we know right now.
SARS targets influencers and online income
SARS is stepping into the digital space and fast. Social media influencers, online content creators, and freelancers earning money through digital platforms are now being targeted for tax compliance. If you're making money from TikTok, YouTube, Instagram, or other online services, SARS expects you to register, declare, and pay your share. Expect stricter VAT rules, more electronic reporting, and quicker audits powered by new tech systems.
For accountants it is now is the time to offer tax advisory services to clients in the digital space, before they get caught off guard.
REITs under the microscope
Real Estate Investment Trusts (REITs) are also on SARS’s radar. Treasury is proposing changes to the definition of a REIT to make sure only legitimate property-owning businesses qualify for tax benefits.
Some property companies that act more like investment funds could lose REIT status, which would lead to higher tax bills. Watch out for clients who may be affected by this change, especially if they rely on REIT status for tax planning.
20% online gambling tax proposal sparks debate
National Treasury has released a discussion paper proposing a new 20% national tax on online gambling. This would be in addition to existing provincial taxes, VAT, and company tax, pushing the total effective tax rate to nearly 40% for some operators.
The industry has pushed back, warning that it could drive legal operators out of the market and encourage illegal gambling instead. Treasury hopes the move could raise up to R10 billion in extra revenue.
Stronger collections could cancel tax hikes
The good news? Finance Minister Enoch Godongwana says if SARS meets its targets, the R20 billion in proposed tax increases could be scrapped. SARS has already been given R7.5 billion to improve its systems and staff. If all goes to plan, SARS is expected to collect R20 to R50 billion more each year just by enforcing existing laws more effectively.
We agree that fixing enforcement and reducing waste should come before asking taxpayers to pay more. However,
What this means for CIBA members
Whether you’re in practice or commerce, this is a critical time to show your value:
✅ Help clients understand how these changes could affect them
✅ Offer guidance to digital earners, REITs, and online businesses
✅ Position your firm as a trusted partner in compliance and risk management
Bottom line
SARS is working hard to avoid new tax increases — but it's tightening the rules to do it. Make sure you and your clients are ready.
Want to be the first to know about the budget? Join CIBA’s 2026 Budget Speech Viewing & Expert Analysis event on 18 February In Person or Online.
