SARS surpasses R2 trillion revenue milestone for first time

The South African Revenue Service (SARS) has reached a historic milestone, collecting R2.01 trillion in net revenue for the 2025/ 26 financial year — the first time it has crossed the R2 trillion mark.

The announcement was made by SARS Commissioner Edward Kieswetter during the presentation of the preliminary revenue outcomes on Wednesday, April 1, according to the South African Government News Agency.

Kieswetter described the achievement as a defining moment for the revenue service, noting that collections increased by R155b compared to the previous year — reflecting year-on-year growth of 8.4%.

ALSO READ: Avoid fines: SARS urges taxpayers to settle dues early

“This is a historic milestone of crossing the R2 trillion threshold for the first time in our history,” he said.

Since the start of his tenure seven years ago, SARS collections have grown at a compound annual growth rate of 5.8%, despite economic challenges such as slow growth, load shedding and the effects of Covid-19.

The largest share of revenue came from personal income tax, which contributed R794 billion. Value-added tax (VAT) followed at R500b, while company tax brought in R350 billion. Customs duties amounted to R352b, and excise duties contributed R182b.

ALSO READ: How to respond to a SARS letter of demand: Key steps for taxpayers

Refund payments totalled R458b by the end of the financial year. Kieswetter emphasised the importance of these refunds, particularly during difficult economic conditions.

“Refunds are an important lifeline for small businesses and households under financial pressure, providing a necessary injection of cash into the economy,” he said.

He added that refund payments accounted for 5.9% of gross domestic product, noting that growth in refunds has consistently outpaced both gross and net revenue, even as SARS strengthened its systems to combat fraud and irregular claims.

SARS took 22 years to reach the R1 trillion mark and only a decade to double that figure to R2 trillion — a progression Kieswetter said reflects the resilience and integrity of the institution.

“SARS is truly a national asset that must never be taken for granted and must be treasured,” he said.

A closing chapter

Kieswetter will conclude his seven-year tenure at the end of April, with his successor set to be announced by President Cyril Ramaphosa.

ALSO READ: SARS opens 2025 tax season with expanded auto assessments and faster refunds

Reflecting on his time in office, he said he answered a call to serve and help restore the credibility of public institutions.

“It was a call to service — to rebuild capability and restore trust,” he said.

He thanked the government and taxpayers for their support while urging continued compliance.

“Every rand collected strengthens the state’s ability to deliver services and support the most vulnerable in society,” he added.

Kieswetter also praised SARS employees, noting that the milestone was the result of the efforts of more than 14 500 staff members who contribute daily to revenue collection.