The South African Revenue Service (SARS) has collected some R2.010 trillion in net revenue for the 2025/26 financial year, breaking the threshold for the first time since its inception.
The historical milestone was announced by SARS Commissioner Edward Kieswetter during a presentation of the preliminary revenue outcome for the financial year on Wednesday.
Collections at SARS have grown at a compound annual growth rate of 5.8% since the start of Kieswetter’s tenure seven years ago.
“This is a historic milestone of crossing [the] R2 trillion threshold for the first time in our history. Indeed, a defining moment. This is R155 billion more than what we collected a year ago, a remarkable year-on-year growth of 8.4% under these economic conditions where nominal growth, for now, is projected to have grown at 4%.
“This implies a tax-to-GDP [Gross Domestic Product] ratio of 25.9% and tax buoyancy ratio of 1.73%,” Kieswetter said.
The largest contributors to the collection were individual taxes at R794 billion followed by Value Added Tax (VAT) at R500 billion, company taxes stood at R350 billion while customs reached R352 billion and excise stood at R182 billion.
Kieswetter noted that refunds stood at R458 billion at year’s end.
“Refund payments…especially during tough economic times for small businesses and families in financial stress, are an important lifesaver and a necessary injection of cash into the economy.
“The fact that the R458 billion refunds that we processed represents 5.9% of GDP. So, I am therefore pleased that our growth in refunds has consistently grown higher than gross or net revenue. This even after we’ve consistently increased refund risk management to deal with impermissible and fraudulent refund claims,” he said.
The revenue collector took some 22 years to reach the R1 trillion threshold and just ten years to double the collection to R2 trillion despite the effects of slow economic growth, load shedding and COVID-19.
“We believe that this is noteworthy and reflects the diligent work of our employees, the institutional integrity of SARS and the tax administrator centrality to the fiscal health of South Africa.
“SARS is truly a national asset that must never be taken for granted and must be treasured,” the Commissioner added.
A worthy farewell
Kieswetter will be ending his tenure as Commissioner of the revenue service at the end of this month with an announcement of his replacement to be announced by President Cyril Ramaphosa.
“As I come to the end of the seven years of national service, I recall the President’s challenge to those who cared about the future of South Africa and the generations to come to step forward, to leave behind a comfortable life of retirement, and take their place at the forefront of the struggle where real change happens.
“It was a call to service, a call to restore credibility and the capability of our damaged institutions, succinctly captured in the call ‘Thuma Mina’.
“I want to thank the President, the Minister [of Finance], and all South Africans for affording me the rare privilege to make my humble contribution to the wellbeing of our country and its people. I am filled with immense pride that thankfully, together with the help of the people at SARS, we have given our best to the nation,” he said.
The Commissioner encouraged all taxpayers to remain compliant while praising employees at the revenue service.
“Collecting over R2 trillion is not an accident, but the outcome of the more than 14 500 employees who diligently perform millions of activities meticulously to achieve this record collection.
“Every rand not only helps build a capable state that honours the social contract but also enables the state to deliver for all South Africans and strengthen fiscal integrity of South Africa.
“The record achievement we reached today is because of all compliant taxpayers;
I would like to thank them for their fiscal citizenship and contribution to help the most vulnerable in our society,” Kieswetter concluded.