• Tax revenue reaches 2,010 billion rand, up 8.4% year-on-year
• Performance outpaces nominal economic growth of 4%
• Reforms and improved compliance support revenue gains

South Africa’s tax authority, the South African Revenue Service (SARS), announced it collected 2,010 billion rand ($118.3 billion) in net tax revenue for the 2025/26 fiscal year, surpassing the 2,000 billion rand mark for the first time.

In an April 1 statement, the performance was presented by SARS Commissioner Edward Kieswetter during the release of the preliminary fiscal results. Revenue increased by 8.4% year-on-year, representing an additional 155 billion rand compared with the previous fiscal year, while nominal economic growth is estimated at 4%.

The South African Revenue Service (SARS) has collected some R2.010 trillion in net revenue for the 2025/26 financial year, breaking the threshold for the first time since its inception.

The historical milestone was announced by SARS Commissioner Edward Kieswetter during a… pic.twitter.com/aelGj8a3ts

— @SAgovnews (@SAgovnews) April 1, 2026

The commissioner said this corresponds to a tax-to-GDP ratio of 25.9% and a tax buoyancy ratio of 1.73.

The main sources of revenue were personal income tax, followed by value-added tax (VAT), corporate income tax, and customs and excise duties. At the same time, tax refunds reached 458 billion rand, or about 5.9% of gross domestic product (GDP), a level considered important to support households and businesses.

These results come as the South African government continues reforms aimed at strengthening tax collection and SARS’ operational capacity. These efforts include the modernization of digital systems, enhanced audit processes, and measures to combat illicit financial flows. As part of the 2026/27 budget, authorities also adjusted tax brackets and credits in line with inflation to avoid “bracket creep,” while abandoning a previously planned 20 billion rand revenue increase in order to support economic activity.

Macroeconomic indicators in South Africa also show signs of improvement. Growth is expected to reach 1.6% in 2026, compared with 0.4% in 2024. In February 2026, consumer price inflation declined to 3%, down from 3.5% in January, supported by stable food prices and lower fuel costs.

Over the past seven years, SARS collections have grown at a compound annual rate of 5.8%, according to the tax authority.

Charlène N’dimon