The South African Revenue Service (Sars) has surpassed R2-trillion in tax collections for the past financial year, pointing to sustained recovery after the institutional and financial damage of the state capture period.
The agency said on Wednesday it collected net revenue of R2.01-trillion in the 2025/26 financial year, which ended on March 31, slightly above the latest R2.007-trillion target set by finance minister Enoch Godongwana in his February budget.
Godongwana lauded retiring Sars commissioner Edward Kieswetter, who he said had in 2019 taken charge of one of several state institutions that had suffered “profound damage” during the years of rampant graft under former president Jacob Zuma.
“Those of us who are witnesses to what kind of Sars you inherited [say] you have done a tremendous job,” the finance minister said.
President Cyril Ramaphosa has already appointed Kieswetter’s successor, Godongwana added.
“I know that the president has made the decision [on] whoever is appointed. I have on my desk a presidential note which tells you who’s going to take the job from the first of May. What is left is for the president to make an announcement,” he said.
“How soon? Anytime, from tomorrow to next to next week, that can happen.”
Sars said the higher revenue haul for 2025/26, up from the R1.855-trillion collected in the previous financial year, was partly due to its compliance revenue efforts, which yielded R316bn, from R304bn in 2024/25.
“This [2025/26 revenue] is R155bn more than what we collected a year ago … a remarkable year-on-year growth of 8.4% under these economic conditions where nominal growth for now is projected to have grown at 4.8%. This implies a tax-to-GDP ratio of 25.9% and a tax buoyancy of 1.73%,” Kieswetter said.
“This demonstrates that a well-functioning tax and revenue authority is one of the proudest achievements of our democracy. We can hold our heads proudly among our international peers.”
The tax base grew 3.8%, from 32.6-million in 2024/25 to 34-million in 2025/26, mainly due to increased registration of individual taxpayers.
In his budget speech in February, Godongwana revised the gross tax revenue estimate for 2025/26 upwards by R21.3bn compared with the 2025 budget, saying he was therefore withdrawing the R20bn tax increase previously pencilled in for 2026.
“In the current economic environment, we knew this was always going to be a daunting challenge. I’m therefore extremely proud to share that at [3pm on Tuesday] we crossed the threshold of R2-trillion,” Kieswetter said.
“When the counting stopped at midnight last night, the provisional result exceeded the revised estimate, minister, that you gave us by R3.34bn. This is no ordinary results announcement. This is a historic milestone of crossing the R2-trillion threshold for the first time in our history.”
Sars said it had achieved its revenue targets despite the challenges of a sluggish economy — which grew just 1.1% in 2025 — as well as geopolitical tensions, global supply-chain disruptions and the proliferation of the illicit economy.
“The illicit economy continues to drain the country’s resources, distort competition and undermine public confidence in the tax system,” it said.
“Activities such as smuggling, customs and excise fraud, underdeclaration, counterfeit trade, fuel and tobacco syndicates, and organised tax crime divert resources away from essential public services and place compliant taxpayers and legitimate businesses at a disadvantage.”
Revenue collection is also likely to come under pressure in the 2026/27 financial year as individual taxpayers and companies grapple with the economic fallout from the Middle East war, which has sent global oil prices soaring.
“The world finds itself at a critical crossroads, facing complex and interconnected challenges that ripple across borders. South Africa, as an open economy, cannot escape these global pressures and uncertainties,” Godongwana said.
“This reality forces us to ask a crucial question: What step must South Africa take to safeguard and sustain its economy amid such turbulences? Strengthening capacity to collect revenue is essential. A well-functioning, effective and efficient revenue authority is a national treasure. This is exactly what we have in Sars today.”
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