SARS smashes revenue targets

The South African Revenue Service (SARS) exceeded the government net tax revenue estimates by R8.76 billion in the 2024/25 financial year.

The revenue agency reported a total net revenue of R1.86 trillion, more than the R1.85 billion the National Treasury targeted.

This represents year-on-year growth of 6.6% in an estimated nominal GDP of 5.4%.

SARS Commissioner Edward Kieswetter announced this data at an event on Tuesday, 1 April 2025.

SARS collected gross revenue of R2.30 trillion for the 2024/25 fiscal year, a 6.9% year-on-year increase, against estimated nominal GDP growth of 5.4%.

This is a record for the taxman and was achieved despite what Kieswetter described as “tough and continuing challenging circumstances”.

The challenges in this period included a nominal GDP of 4.9% and lower wage increases than estimated.

The commissioner also highlighted lower fuel consumption, declining imports, and supply chain security risks as challenges.

Kieswetter said the impact of logistics constraints and tax and financial crime also contributed to the tough environment.

Despite these challenges, the taxman managed to smash its revenue targets, and Kieswetter said this could not have been done without the significant efforts made to rebuild SARS.

Over the past 6 years, Kieswetter and his team have worked hard to rebuild the tax agency after South Africa’s state capture era under former President Jacob Zuma ravaged SARS.

Kieswetter said their focus has been on restoring leadership, governance, integrity and institutional capabilities to the agency to build a “modern SARS”.

The commissioner said their efforts become clear when looking at taxpayers’ improved sentiment towards SARS, which can be seen in improved taxpayer compliance behaviour.

In 2019/20, taxpayer compliance sat at 66%, and in 2024/25, this figure was 77.09%.

Voluntary compliance followed a similar though more muted trend, going from 62.85% in 2019/20 to 66.29% in 2024/25.

“Our behaviour must be irreproachable, and our integrity must be beyond question so that people who do not like to part with their money do so whilst knowing that they have been treated professionally and fairly and that their contribution is towards a cause that is worthy,” he said.

Public trust in the taxman has also increased over the past few years. In 2024/25, taxpayer trust stood at 74.76%.

The commissioner also boasted that the revenue agency has received unqualified audit opinions since 2019/20.