The South African Revenue Service (SARS) has, for the first time, collected more than R2-trillion in revenue.
SARS commissioner Edward Kieswetter reported net revenue of R2.01-trillion, slightly exceeding its original estimate of R2.07-trillion.
The outcome reflects an 8.4% year-on-year increase, outpacing nominal gross domestic product (GDP) growth of 4.8%.
“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,” Kieswetter said on Wednesday.
“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 strengthens the fiscal integrity of South Africa.”
VAT collections drive revenue
Kieswetter attributed the strong performance to higher-than-expected gross revenue and lower refund payments.
Gross revenue reached R2.5-trillion, up 7.2% from the previous year, while refunds totalled R457.9-billion, which was slightly below projections.
Domestic value-added tax (VAT) collections were also the main revenue driver, contributing R604-billion. Large businesses made up 48.2% of this number, while non-large vendors contributed 51.8%.
This, alongside provisional corporate income tax and contributions from the finance, community, and mining sectors, was identified as a key driver of growth.
“This success follows seven years of focused revenue recovery after a period marked by eroded governance, traumatised employees, deteriorating public trust, and declining revenue performance.
“Our extensive rebuilding programme has restored institutional integrity, public trust, and credibility; it has modernised SARS and positioned it for the future,” said Kieswetter.
Alongside the strong revenue performance, SARS has intensified its focus on tackling the illicit economy, particularly in high-risk sectors like alcohol, fuel, and tobacco.
Kieswetter emphasised that non-compliance would not be tolerated, while compliant taxpayers would be treated fairly.
Criminal cases registered with NPA
The revenue service reported 17 internal criminal investigation cases linked to customs and excise (C&E) non-compliance across these industries, with a potential financial prejudice of R2.3-billion, largely tied to illicit fuel, tobacco, and alcohol trade.
A total of 103 C&E cases have been registered with the National Prosecuting Authority (NPA), with 29 already on trial or allocated court dates, while 74 are still awaiting trial dates.
During the current financial year, five new cases were registered and three successful prosecutions secured.
As of March 25, eight cases specifically linked to tobacco and illicit cigarettes were under the NPA, half of which are already on trial or have court dates, with the remainder awaiting allocation.
By late March, 36 importers and clearing agents had their licences suspended or cancelled through its licensing, registration and cancellation committee, mainly due to customs violations linked to fuel, tobacco, and alcohol.
According to Kieswetter, it took SARS 18 years to reach its first R1-trillion in net revenue, but only 10 years to double that figure to R2-trillion.
Looking ahead, SARS expects to collect R2.127-trillion in the 2026/2027 financial year, representing growth of 5.8%, with the tax-to-GDP ratio projected to edge up to 26%.
- For the first time, South African Revenue Service (SARS) collected over R2-trillion in revenue, achieving R2.01-trillion, an 8.4% year-on-year increase surpassing nominal GDP growth.
- Domestic VAT collections were the main revenue driver, contributing R604-billion, with large and non-large vendors nearly equally split; strong performance also came from corporate income tax and key economic sectors.
- SARS credited this record to diligent efforts by over 14,500 employees and a seven-year revenue recovery program that restored institutional integrity and public trust after past challenges.
- The agency intensified crackdown on illicit trade in high-risk sectors (alcohol, fuel, tobacco), registering 17 internal criminal investigations and 103 cases with the National Prosecuting Authority, with ongoing trials and prosecutions.
- SARS aims to collect R2.127-trillion in 2026/2027, expecting 5.8% growth and an increased tax-to-GDP ratio of 26%, doubling revenue in just 10 years after the first trillion took 18 years.
SARS commissioner Edward Kieswetter reported net revenue of R2.01-trillion, slightly exceeding its original estimate of R2.07-trillion.
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"Every rand not only helps build a capable state that honours the social contract but also enables the state to deliver for all
Kieswetter attributed the strong performance to higher-than-expected gross revenue and lower refund payments.
Gross revenue reached R2.5-trillion, up 7.2% from the previous year, while refunds totalled R457.9-billion, which was slightly below projections.
Domestic value-added tax (VAT) collections were also the main revenue driver, contributing R604-billion. Large businesses made up 48.2% of this number, while non-large vendors contributed 51.8%.
“
“Our extensive rebuilding programme has restored institutional integrity, public trust, and credibility; it has modernised SARS and positioned it for the future,” said Kieswetter.
Kieswetter emphasised that non-compliance would not be tolerated, while compliant taxpayers would be treated fairly.
A total of 103 C&E cases have been registered with the National
As of March 25, eight cases specifically linked to tobacco and illicit cigarettes were under the NPA, half of which are already on trial or have court dates, with the remainder awaiting allocation.
By late March, 36 importers and clearing agents had their licences suspended or cancelled through its licensing, registration and cancellation committee, mainly due to customs violations linked to fuel, tobacco, and alcohol.
