New SARS Commissioner Dr Ngobani Johnstone Makhubu Sets Out Vision for Tax Reform
President Cyril Ramaphosa has welcomed the appointment of Dr Ngobani Johnstone Makhubu as Commissioner of the South African Revenue Service (SARS) for a five‑year term beginning 1 May 2026, according to a statement issued by the Government Communication and Information System (GCIS). The announcement comes as South Africa grapples with tightening fiscal constraints and modest economic growth, prompting the new finance minister to outline a clear agenda for strengthening the nation’s tax system.
Appointment Announced by GCIS
The GCIS notice highlighted that Dr Makhubu’s selection follows a rigorous vetting process aimed at securing a leader with both technical expertise and a track record of integrity in public finance. The statement emphasized that the commissioner’s mandate will run until 30 April 2031, providing stability for medium‑term revenue planning.
Background and Expertise
Before his appointment, Dr Makhubu served as Deputy Commissioner for Large Business at SARS, where he oversaw audit programs that contributed to an additional ZAR 12 billion in collected revenue during the 2022/23 fiscal year (SARS Annual Report, 2023). Earlier in his career he held senior positions at the National Treasury, including:
- Director of Tax Policy (2015‑2018)
- Chief Economist, Fiscal Consolidation Unit (2018‑2020)
- Advisor to the Minister of Finance on digital taxation initiatives (2020‑2022)
These roles have given him deep insight into both the administrative and policy dimensions of South Africa’s tax landscape.
Priorities Amid Economic Pressures
South Africa’s budget deficit widened to 5.9 % of GDP in FY2023/24, while real GDP growth hovered at 0.8 % (National Treasury, 2024). In response, Dr Makhubu outlined three focal areas for his tenure:
- Expanding the tax base – leveraging data analytics to bring informal traders and digital platforms into the tax net, aiming to increase the tax‑to‑GDP ratio from the current 25.3 % toward the 27 % target set in the 2024 Medium Term Budget Policy Statement.
- Strengthening compliance – modernising audit techniques, expanding risk‑based selection models, and enhancing taxpayer education to reduce the estimated ZAR 30 billion loss from non‑compliance (SARS Compliance Gap Study, 2023).
- Tackling the illicit economy – coordinating with law‑enforcement agencies to curb smuggling, counterfeit goods, and illegal mining, sectors that collectively erode an estimated ZAR 45 billion in potential revenue each year (Financial Intelligence Centre, 2023).
Comments from the Finance Minister and Business Day TV Interview
During a recent interview on Business Day TV, the finance minister praised Dr Makhubu’s “pragmatic approach and commitment to fostering a fair tax environment.” Dr Makhubu himself stressed that “technology will be an enabler, not a replacement, for sound tax administration,” noting plans to pilot an AI‑driven filing assistant for small businesses by mid‑2027.
Observers note that if the commissioner’s initiatives achieve even a fraction of their projected gains, South Africa could narrow its fiscal gap while fostering greater equity in the tax system. Continued transparency—through regular performance reports published by SARS and independent audits by the Auditor‑General—will be key to maintaining public trust.
Sources: Government Communication and Information System (GCIS) statement; Business Day TV interview, March 2025; National Treasury 2024 Budget Review; SARS Annual Report 2023; SARS Compliance Gap Study 2023; Financial Intelligence Centre Report on Illicit Flows, 2023; World Bank South Africa Economic Update, July 2024.
