South Africa: SARS Breaks R2 Trillion Revenue Barrier for the First Time in South African History

Commissioner Kieswetter marks a defining milestone as tax collections grow 8.4 percent year-on-year, doubling in just a decade despite slow growth and economic shocks

The South African Revenue Service has crossed the R2 trillion threshold for the first time in its history, collecting R2.010 trillion in net revenue for the 2025/26 financial year — a landmark moment announced by Commissioner Edward Kieswetter during the presentation of the preliminary revenue outcome on Wednesday.

The achievement represents R155 billion more than the previous year’s collection, an 8.4 percent year-on-year increase achieved against a backdrop of nominal economic growth projected at just 4 percent. The implied tax-to-GDP ratio stands at 25.9 percent, with a tax buoyancy ratio of 1.73 percent — reflecting the growing efficiency of revenue collection relative to the size of the economy.

From R1 Trillion to R2 Trillion in a Decade

The scale of the milestone is sharpened by the trajectory behind it. SARS took 22 years to reach the R1 trillion mark, then doubled that collection in just ten years — navigating the compounding pressures of slow economic growth, years of load shedding, and the economic devastation of the COVID-19 pandemic along the way. Since Kieswetter assumed the commissionership seven years ago, collections have grown at a compound annual growth rate of 5.8 percent.

“This is a historic milestone of crossing the R2 trillion threshold for the first time in our history. Indeed, a defining moment,” Kieswetter said, crediting the achievement to the diligence of SARS employees and the institutional integrity the organisation has rebuilt over the past seven years.

What Drove the Collections

Individual income taxes led all revenue streams at R794 billion, followed by customs at R352 billion, Value Added Tax at R500 billion, and company taxes at R350 billion. Excise duties contributed R182 billion. Refunds processed during the year totalled R458 billion — equivalent to 5.9 percent of GDP — a figure Kieswetter described as an important economic lifeline for small businesses and families under financial stress, and one that has consistently grown faster than gross revenue.

A Farewell From a Commissioner Who Rebuilt an Institution

The milestone carries added significance as Kieswetter prepares to end his tenure at the close of March, with President Cyril Ramaphosa yet to announce his replacement. The Commissioner reflected on his seven years in the role as a response to a call to restore credibility to institutions damaged by years of state capture and administrative decay.

“Collecting over R2 trillion is not an accident, but the outcome of the more than 14,500 employees who diligently perform millions of activities meticulously to achieve this record collection,” he said, closing with a direct acknowledgement of the compliant taxpayers whose fiscal citizenship underpins SARS’ ability to fund public services and support the most vulnerable in South African society.