“South Africa’s tax authority, SARS, has identified the e-hailing industry as a priority sector as it expands efforts to improve tax registration, filing and payment within the informal economy. Finance Minister Enoch Godongwana said SARS is using risk assessments, available data, targeted interventions and taxpayer education to improve compliance among businesses and operators in the sector.”
SARS Targets South Africa’s E-Hailing Industry as Tax Authority Expands Compliance Drive
South Africa’s tax administration is expanding into another rapidly growing part of the country’s transport economy, with the e-hailing industry now identified as a priority sector for tax compliance. The development places services and operators connected to platforms such as Uber and Bolt within a wider government effort to broaden the country’s tax base and bring more economic activity into the formal tax system.
The issue has gained attention because e-hailing occupies an unusual position in South Africa’s economy. It is a technology-driven industry that connects consumers with drivers through digital platforms, yet many of the individuals earning income through these services operate as independent businesses rather than conventional employees. That structure creates particular questions around registration, record-keeping, taxable income and compliance.
The latest development was reported on 27 September 2026 by TopAuto, which said South African Revenue Service (SARS) has identified e-hailing as a priority sector in its campaign to bring more of the informal economy into the tax system. The publication reported that Finance Minister Enoch Godongwana disclosed the position while responding to parliamentary questions.
The development is part of a broader tax-base expansion strategy rather than an isolated decision concerning ride-hailing drivers. Earlier reporting by Eyewitness News, BusinessTech and IOL also documented the government’s focus on the informal economy, the taxi industry and e-hailing services.
Why e-hailing is now receiving attention
E-hailing has become an established component of urban transport in South Africa. Digital platforms allow passengers to request rides through mobile applications while drivers use their private or commercially operated vehicles to generate income.
For SARS, the digital nature of the industry potentially provides a different set of compliance opportunities from traditional informal businesses. Digital platforms generate electronic records associated with trips and payments. Government’s stated approach involves using available data and risk assessments to identify taxpayers who may require registration, filing or other compliance interventions.
According to Godongwana’s response, SARS uses risk assessments, available data, targeted interventions and taxpayer education to improve registration, filing and payment in the sector.
This does not necessarily mean that every e-hailing driver is being accused of failing to comply with tax obligations. Rather, the government is identifying the sector as an area where compliance can be strengthened.
That distinction is important because e-hailing includes a wide range of participants. Some drivers may operate full-time businesses, while others use platforms as a supplementary source of income. Vehicle ownership arrangements can also differ, with some drivers owning vehicles and others operating vehicles through fleet or rental arrangements.
These differences can affect the way income and expenses are recorded and reported.
A wider push to broaden South Africa’s tax base
The e-hailing focus forms part of a broader challenge facing South African public finances: maintaining revenue collection while expanding economic activity that is not fully represented in the traditional tax base.
Godongwana previously said SARS had identified the informal economy and taxi industry as priority areas for broadening tax compliance. Eyewitness News reported that the finance minister said the objective was to help more businesses register, understand their tax obligations and pay what is due.
IOL separately reported that SARS had registered 21,890 previously unregistered taxpayers in the informal economy since the 2024/25 financial year, generating R314 million in revenue.
These figures illustrate the revenue authority’s broader approach: rather than relying exclusively on existing formal taxpayers, SARS is attempting to identify economic activity that is already taking place outside or at the edges of the formal tax system.
For government, improving compliance can potentially increase revenue without requiring the same approach as introducing entirely new taxes. However, compliance measures also have to account for the administrative capacity of small businesses and independent operators.
What the move could mean for e-hailing drivers
For e-hailing drivers, greater tax scrutiny could mean increased attention to registration, income declarations, record-keeping and filing obligations.
Drivers who already comply with their tax responsibilities may experience the development primarily as an increase in verification or administrative requirements. Others may need to formalize their businesses or obtain professional assistance to understand their obligations.
The exact tax treatment of an individual driver depends on the person’s circumstances and applicable South African tax rules. Factors can include how the business is structured, the level of income earned, deductible business expenses and whether particular registration thresholds or obligations apply.
Consequently, the announcement should not automatically be interpreted as the introduction of a new tax specifically on every Uber or Bolt driver.
The information currently available points instead to an enforcement and compliance programme designed to improve registration, filing and payment.
This distinction matters for consumers as well. A tax-compliance drive is different from a direct increase in passenger fares. Whether any additional compliance costs eventually affect prices would depend on how individual operators and platforms respond.
Digital data is becoming increasingly important
One of the most significant aspects of the development is the role of data in modern tax administration.
Traditional informal businesses can sometimes be difficult for authorities to identify because transactions may occur in cash and without extensive records. Digital platforms, by contrast, can generate information about transactions, payments and economic activity.
MyBroadband reported that Godongwana said SARS was using transaction data in its efforts concerning e-hailing drivers.
The increasing use of digital information reflects a wider transformation in tax administration. Revenue authorities around the world are increasingly using electronic information to identify discrepancies and improve compliance.
For South Africa, this approach could become increasingly important as more economic activity moves onto digital platforms.
At the same time, data-driven compliance raises practical questions around privacy, accuracy, and how information is interpreted. A transaction record does not necessarily provide a complete picture of a person’s taxable income because businesses can also have legitimate operating expenses.
That means effective tax administration requires more than identifying transactions. It also requires appropriate assessment of the underlying business activity.
E-hailing is also undergoing regulatory formalization
The tax development comes at a time when South Africa’s e-hailing sector is undergoing broader regulatory changes.
The National Land Transport Amendment Act formally recognized e-hailing services as a category of public transport and introduced regulatory requirements for operators and drivers. The Department of Transport has said the framework includes operating licences and safety requirements.
This creates an increasingly formal regulatory environment around an industry that previously operated with significant uncertainty.
The intersection of transport regulation and tax administration is important. As the industry becomes more formally recognised, operators may face responsibilities across several areas, including transport licensing, business registration, tax compliance and safety requirements.
For drivers, this could mean that operating an e-hailing business increasingly resembles running a formal small enterprise rather than simply earning occasional income through an application.
Potential implications for consumers
The tax-compliance initiative is also relevant to passengers because e-hailing is part of South Africa’s broader urban transport system.
If compliance costs rise, individual operators may seek to adjust their business models. Possible effects could include changes in the number of hours drivers work, decisions about which trips they accept and, depending on market conditions, changes in prices.
However, there is currently no evidence in the available reporting that SARS has announced a specific passenger fare increase resulting from the initiative.
The immediate policy objective described by government is tax compliance: registration, filing and payment.
The effect on fares would therefore depend on subsequent developments within the industry rather than being an automatic consequence of the announcement.
The broader fiscal context
South Africa’s tax administration is operating against a difficult economic background. Statistics South Africa reported that real GDP contracted by 0.2% in the second quarter of 2026, while the finance, real estate and business services industry increased by 0.3%.
The South African Reserve Bank subsequently raised its policy rate by 25 basis points to 7.25%, citing renewed inflation pressures, particularly from fuel prices and elevated services inflation. The central bank said annual growth for 2026 was projected at 1.2%.
Against this backdrop, revenue collection remains an important component of public-sector financial management. Bringing more economic activity into the tax system is one route through which government can seek to strengthen collections.
The challenge is balancing improved compliance with the realities faced by smaller businesses and workers.
What happens next?
For e-hailing operators, the immediate issue is likely to be understanding and meeting existing obligations rather than anticipating a completely new tax regime.
SARS has indicated that its strategy involves taxpayer education alongside risk assessments, data analysis and targeted interventions.
That educational component could be particularly important for independent drivers who may not have experience operating formal businesses or completing complex tax documentation.
The government’s broader formalization efforts also mean that transport operators could increasingly interact with several government institutions rather than dealing with a single regulator.
For passengers, the development is primarily a policy and regulatory issue for now. There is no confirmed indication that the announcement itself automatically changes e-hailing fares.
Conclusion
South Africa’s decision to identify e-hailing as a priority sector for tax compliance represents another stage in SARS’s broader effort to expand the country’s tax base. The focus is not limited to ride-hailing: government has also identified the wider informal economy and traditional taxi industry as areas where registration, filing and payment compliance can be improved.
The e-hailing industry’s digital structure gives SARS access to data that can potentially assist with identifying economic activity and compliance risks. At the same time, the sector’s mixture of full-time drivers, part-time operators, vehicle owners and fleet arrangements means that tax obligations can vary from one participant to another.
The latest announcement therefore signals increased attention from the revenue authority rather than a blanket new tax on all e-hailing drivers.
As South Africa continues to formalize the e-hailing industry through transport regulation, tax compliance is becoming another important part of the sector’s development. The coming period will show how SARS implements its approach, how operators respond, and whether greater formalization changes the economics of providing and using app-based transport services.
