- Tax revenue reached 2,010 billion rand, up 8.4% year-on-year
- Performance outstripped nominal economic growth of 4%
- Reforms and better compliance support revenue gains
South Africa's tax authority, the South African Revenue Service (SARS), announced that it collected 2,010 billion rand ($118.3 billion) in net tax revenues for the 2025/26 financial year, surpassing the 2,000 billion rand mark for the first time.
In a statement dated April 1, the performance was presented by SARS Commissioner Edward Kieswetter during the release of preliminary financial results. Revenues increased by 8.4% year-on-year, representing an additional 155 billion rand compared to the previous financial year, while nominal economic growth is estimated at 4%.
The South African Revenue Service (SARS) has collected some R2.010 trillion net revenue for the 2025/26 financial year, breaching the threshold for the first time since its inception.
This historic milestone was announced by SARS Commissioner Edward Kieswetter during an event… pic.twitter.com/aelGj8a3ts
– @SAgovnews (@SAgovnews) April 1, 2026
The Commissioner said this corresponds to a tax-to-GDP ratio of 25.9% and a tax buoyancy ratio of 1.73.
The main sources of revenue were personal income tax, followed by value added tax (VAT), corporate income tax, and customs and excise duties. Also, tax refunds reached 458 billion rand or about 5.9% of gross domestic product (GDP), a level considered critical to supporting households and businesses.
The results come as the South African government continues reforms aimed at strengthening tax collection and the operational efficiency of SARS. These efforts include modernization of digital systems, enhanced audit procedures and measures to combat illicit financial flows. As part of the 2026/27 budget, officials also adjusted tax brackets and credits in line with inflation to avoid “bracket creep”, while abandoning a previously planned 20 billion rand revenue increase to support economic activity.
Macroeconomic indicators in South Africa are also showing signs of improvement. The growth rate is expected to reach 1.6% in 2026 compared to 0.4% in 2024. Supported by stable food prices and low fuel costs, consumer price inflation declined to 3% in February 2026 from 3.5% in January.
According to the tax authority, over the past seven years, SARS collections have grown at a compound annual rate of 5.8%.
Charlene N'Dimon