South African Revenue Service collections hit R2.01-trillion in the 2025/26 financial year, exceeding the R2-trillion mark for the first time. The figure surpassed 2025 budget estimates by almost R25-billion and marks an 8.4% increase from the previous year. Commissioner Edward Kieswetter called it a historic crossing as he bows out.
The financial year ended at midnight on Tuesday, with revenue driven by strong VAT, PAYE and corporate collections amid compliance efforts. Domestic VAT rose 7.6% to R604-billion, PAYE reached R767-billion with 8.5% growth, and mining revenue more than doubled to over R25-billion.
Kieswetter attributed the results to SARS's compliance initiatives, administrative efficiencies and a marginal mining contribution. "This achievement reflects the focused and attentive work of SARS in its compliance initiatives; improved administrative efficiencies; and a marginal contribution from the mining sector," he said. The collections avoided an additional VAT increase flagged by Finance Minister Enoch Godongwana.
Despite a sluggish economy and other challenges, SARS achieved these figures a decade after first surpassing R1-trillion. Godongwana expressed gratitude, noting President Cyril Ramaphosa has selected Kieswetter's successor from 1 May.
Kieswetter highlighted fights against the illicit economy, launching 17 criminal probes into illegal tobacco and alcohol trade. He introduced Modernisation 3.0, featuring unique digital identities and AI for compliance.
SARS also reported a R240-billion trade surplus, with a trade facilitation index rising from 52% to over 75%. Imports from the United States dropped, while China, India and Germany remain key partners.