The South African Revenue Service (SARS) raised a record R2.303 trillion of revenue in the 2024/25 year, an all-time rise of 6.9% on the previous year.
It is a record-breaking R8.8 billion over target and a new peak of efficiency in collecting taxes. SARS also paid R447.7 billion of taxes back, up 8.2% on the previous year, injecting much-needed cash into the economy.
Commissioner Edward Kieswetter also pinpointed the double value of SARS’s performance and reporting, saying, “Not only does this record support national priorities, but our vigilance has also protected the system against fraudulent claims, preventing R146.7 billion in unauthorized refunds.” The record also demonstrates SARS’s commitment to the balance between collecting revenue and treating taxpayers fairly.
The buoyancy of 24.8% and tax-to-GDP ratio of 1.20 is indicative of a solid revenue base. The Personal Income Tax (PIT) increased by 12.6%, while the rest of the collections, except for CIT, rose by 2.1% despite pressures in the mining sector.
Value-Added Tax (VAT) accounted for 24.7% of total revenue, including R365.5 billion refunds to business and Small, Medium, and Micro Enterprises (SMMEs).
Aside from the short-term funds, SARS performance adds South African dependability to investors in the form of effective management of funds.
The compliance efforts added another R301.5 billion through data analysis and artificial intelligence to become more effective.
Future SARS is eyeing R2.006 trillion of revenues in the 2025/26 period and another R7.5 billion for other improvements to the tax system and to voluntary compliance.
SARS sustainability over the long term provides the basis of South African fiscal sustainability, facilitating long-term financing of public goods and services and maintaining investor confidence in nation finances in the future.
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