SARS collects record R2 TRILLION in revenue for past financial year

The South African Revenue Service (SARS) has passed the R2 trillion mark in net revenue collection for the 2025/26 financial year, raking in a record R2,010 trillion.

The improved revenue collections result is R24.7 billion higher than estimated a year ago as announced by the Minister at Budget 2025, the agency says in a statement.

The achievement is credited to the taxman's compliance initiatives and improved administrative efficiencies, along with a marginal contribution from the mining sector.

SARS points out that this this revenues boost is what enabled the Finance Minister to save the nation an additional VAT increase as he had originally communicated.

Stephen Grootes interviews SARS Commissioner Edward Kieswetter, whose term is coming to an end after seven years at the helm.

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Kieswetter emphasizes that the record collections of the past financial year are not down to what happened in that year, but the result of the compounding effect of seven years of work.

"Work that has consistently looked at broadening the tax base to ensure that everyone who should be registered is registered, that those who should file do file their returns on time - we've had many abuses where people filed their returns but don't pay the payments."

The outgoing SARS boss says it is the "meticulous" follow-up of every of these outstanding actions that has ensured that their registration compliance is now almost 90%, and payment compliance has risen to approximately 75%.

These figures were all in the late 50s or early 60s at the start of the work seven years ago, he says.

"Overall, compliance has now crossed 70%... so if a taxpayer for example is non-compliant in year one and we're able to change their behaviour and make sure it stays changed, there is an endowment effect on compliance. That is an important acknowledgement, that SARS is not a set of transactions but has built an institutional system of improved, more efficient, more effective tax administration."

"In an economy that is fairly sluggish one has to ask the question: How is SARS able to collect a year-on-year tax curve of 8.4% when economic conditions are just under 5%? It is that compounding effect of building instituional integrity."

At the same time, SARS warns that a significant threat to optimal revenue collection remains in terms of the illicit economy thriving in its various forms.

It's estimated that the fiscus loses well over R100 billion in revenue each year to the illicit economy.

Scroll up to the audio player to hear more from the SARS Commisioner