SARS passes R2 trillion revenue milestone for the first time

The South African Revenue Service (SARS) has reached a historic milestone by 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 preliminary revenue results 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 – representing an increase of 8.4% year-on-year.

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

Since the beginning 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 impact of COVID-19.

The largest share of revenue came from personal income tax, which contributed R794 billion. Value added tax (VAT) applied to R500b, while company tax brought in R350b. Customs duty amounted to R352b, and excise duty contributed R182b.

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Refund payments totaled R458b by the end of the financial year. Kieswetter stressed the importance of these refunds, especially during difficult economic conditions.

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

He said refund payments amount to 5.9% of GDP, noting that the growth in refunds has consistently outpaced both gross and net revenues, even as SARS has strengthened its systems to deal with fraud and irregular claims.

It took SARS 22 years to reach the R1 trillion mark and only a decade to double that figure to R2 trillion – Kieswetter said this progress reflected the resilience and integrity of the institution.

“SARS is truly a national asset that should never be taken lightly and must be cherished,” he said.

a closing chapter

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

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

“It was a call to service – rebuilding capacity and restoring 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 provide services and support the most vulnerable in society,” he said.

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