SARS is improving: 'They’re enforcing a lot more compliance. They are better at collecting taxes'

702 and CapeTalk's Africa Melane speaks with Certified Financial Planner and owner of Freedom Financial Planning Byron Nicol about the South African Revenue Service (Sars) and its improving performance.

Listen below:

Sars collected R1.85 trillion in taxes in the 2024/25 financial year, outperforming its estimates.

Commission Edward Kieswetter said, “I’m therefore pleased to announce that SARS has delivered on the challenge set by the minister during his budget announcement. The challenge he set was R1,846 trillion."

Personal income tax made up most of what was collected, increasing by 12% in the period under review.

Nicol says over the years, Kieswetter has been 'rebuilding Sars'.

"What's happening is they're enforcing a lot more compliance and are better at collecting taxes... So, if you are defaulting, you're going to have some problems... coming after you and fining you with the increased methods they're using to collect that tax."

- Byron Nicol, Certified Financial Planner - Freedom Financial Planning

"For the last two years now, they have not changed the tax brackets... Normally, every year, they increase the tax threshold with inflation so, as your salary goes up with inflation every year, you're just paying more tax for the same amount of income on a like-for-like basis - it's a bit painful for us as citizens."

- Byron Nicol, Certified Financial Planner - Freedom Financial Planning

The increase in VAT will also impact citizens, explains Nicol. 

"The increase in VAT has a real impact on the cost of goods that's directly passed on to us as the consumers."

- Byron Nicol, Certified Financial Planner - Freedom Financial Planning

Scroll up to the audio player to listen to the conversation.