In his keynote address on the next era of tax administration, the Commissioner outlined what lies ahead to build a modern, future-proof tax administration. He emphasised that SARS remains central to the country’s ability to collect revenue efficiently, fairly and sustainably. The tax authority is also seeking to leverage the new era of digitised tax administration to convert constraints into sustained fiscal relief.
Tax Professionals Gather for Insightful Discussions
Makhubu received a warm welcome from the tax profession. Although he is no stranger to the line-up of speakers at the annual Tax Indaba, this was the first time he addressed the Indaba in his capacity as SARS Commissioner.
The Tax Indaba, the largest gathering of tax professionals in South Africa, drew over 350 attendees in person, with a further 200-plus attending virtually. The event will conclude on Wednesday, 16 September 2026.
The first day of the Tax Indaba was characterised by important discussions on, amongst others, global tax trends, the future of tax policy and the growing danger of representative liability. It also touched on broader issues including macroeconomic stability and the direction of South African trade in a fragmenting world.
What is Collected and How it is Collected — Both Matter
Makhubu explained that SARS’s success cannot be measured by revenue performance alone. “Revenue sustainability is not only about what is collected, but also how it is collected. It is good to celebrate the numbers, but we must understand how we got to those numbers.”
It is equally important how taxpayers and traders are treated, how SARS employees conduct themselves, how sustainable the capacity within the tax administration is and whether it gains the trust of the people it serves.
He said the tax system is stable and healthy, but its future success depends on four priorities, namely developing capable and ethical people, accelerating modernisation, securing sustainable funding and building stronger relationships with stakeholders.
Tax Practitioners’ Shared Responsibility
Addressing tax practitioners directly, Commissioner Makhubu called for a stronger relationship built on shared responsibility for the integrity of the tax system. “The relationship between SARS and tax practitioners must evolve beyond transactions and disputes. We share a common responsibility to protect the integrity of the tax system, improve the taxpayer experience, and strengthen confidence in the rule of law.”
SARS will continue to use platforms such as Tax Indaba to exchange ideas, hear concerns, and work with stakeholders to improve tax administration.
He said he is proposing a new type of programme at SARS to recognise trusted tax practitioners, based on other programmes that is proving useful. However, how to categorise people in the tax profession for this initiative will not be determined by SARS only, but it will be work done collaboratively. “Ultimately we are able to infuse some sense of who are the best tax practitioners in terms of their own compliance and the compliance of their clients.”
AI, Debt and the Role of Collaboration
Following the keynote address, Makhubu answered questions from SAIT CEO Professor Keith Engel on the use of Artificial Intelligence (AI), SARS’s growing debt book and progress with modernising the tax administration system.
He reiterated that SARS Modernisation 3.0 seeks to build an intelligent tax and customs administration platform powered by data, automation, and AI, while upholding strong governance and public accountability. Key initiatives include VAT, customs and excise modernisation, intelligent case management, digital identity capabilities, and the use of AI to improve routine processes and service delivery.
While noting the importance of technology and adapting to changing demands, the Commissioner stressed that technology is not a substitute for people, but a tool to improve outcomes for taxpayers, traders, and SARS employees.
“The future of tax administration is not people versus technology, but it is people and technology working together to make compliance easier, services faster, and enforcement more precise. Technology must strengthen human capability, not replace it.”
Engel agreed that AI can get rid of the drudge work, but that it must be supplemented by people.
He welcomed the Commissioner’s address, highlighting the importance of collaboration between SARS, tax professionals, business and other stakeholders as South Africa finds itself in a changing fiscal and tax environment.
See the SARS media release here:
https://www.sars.gov.za/latest-news/media-release-sars-sets-out-vision-for-the-next-era-of-tax-administration-at-tax-indaba-2026/
