The South African Revenue Service (SARS) has announced a landmark partnership with the South African Reserve Bank (SARB) to develop a cost-effective instant payment system. This collaboration forms a cornerstone of the SARS digital transformation roadmap for 2026 to 2030, designed to increase financial inclusion and reduce the volume of cash in circulation across the national economy.
Outgoing Commissioner Edward Kieswetter, presenting the 2026 Revenue Announcement, detailed the technological advancements dubbed “Modernisation 3.0.” Central to this vision is the allocation of a unique digital identity to every taxpayer. This system, protected by biometric verification and two-factor authentication, will allow individuals to access a comprehensive review of their tax accounts and manage compliance obligations in real-time.
“The digitalisation journey is not a finite project, but a new way of being,” Kieswetter remarked, noting that President Cyril Ramaphosa and the Government of National Unity have prioritised state capability through technological innovation. The drive follows an additional R7.5 billion funding allocation from the National Treasury to help SARS recover from years of underfunding and “play catch-up” in a rapidly evolving global environment.
The modernisation drive extends beyond payments; SARS intends to develop an intelligent case management system leveraging agentic artificial intelligence and big data. Furthermore, the revenue service plans to link its systems directly to points of sale throughout the value chain, eventually enabling the automatic assessment of Value-Added Tax (VAT) returns.
As this ambitious era of digitisation begins, the leadership of the revenue service is set to transition. President Ramaphosa has confirmed the appointment of a new Commissioner to succeed Kieswetter and lead the implementation of these high-tech strategies starting in May.
This transition is bolstered by a R7.5 billion funding allocation designed to ensure that the “Modernisation 3.0” project has the necessary resources to deliver on its promise of a more inclusive, digital-first financial system for all South Africans.
