The South African Revenue Service (SARS) has announced a record gross revenue collection of R2.303 trillion for the 2024/25 fiscal year, reflecting 6.9% year-on-year growth against estimated nominal GDP growth of 5.4%.

Despite economic headwinds, SARS paid out R447.7 billion in refunds, the highest ever, boosting economic activity.

Net collections reached R1.855 trillion, exceeding revised estimates by R8.8 billion.

Key Highlights

• Tax-to-GDP ratio: 24.8%, signaling strong fiscal health.
• Tax buoyancy: 1.20, showing revenue growth outpacing GDP.
• Refund fraud prevention: SARS blocked R146.7 billion in fraudulent claims.

SARS Commissioner Edward Kieswetter stated: “I am pleased that the R447.7 billion returned into the hands of taxpayers is good for the economy. I, however, remain deeply concerned about the ever-present threat of refund fraud and abuse of the system.”

Sector Performance

• Personal Income Tax (PIT): Grew 12.6% (R81.8 billion), aided by Finance and Community sector PAYE and Two-Pot withdrawals (R12.9 billion vs. R5 billion projected).
• Company Income Tax (CIT): Up 2.1% (R6.5 billion), driven by Finance sector profits, while Mining declined.
• VAT: Net collections rose 2.3% (R10.5 billion), with R365.5 billion in refunds (6.6% growth). R127.4 billion went to SMMEs.

Compliance & Enforcement

SARS leveraged AI, data analytics, and machine learning to enhance compliance, generating R301.5 billion through interventions, including:

• R94 billion from resolving 3.7 million debt cases.
• R103 billion from 1.7 million AI-driven verifications.
• R59 billion from 230,000 audits.
• R30 billion from 198 syndicated crime investigations.

Future Plans

With an additional R7.5 billion allocated by Finance Minister Enoch Godongwana, SARS will:

• Strengthen enforcement against illicit trade, money laundering, and cybercrime.
• Modernize tax and customs systems.
• Expand Auto-Assessment, which saw 98% uptake in 2024/25.

Kieswetter concluded: “I express my heartfelt thanks to all South Africans, especially compliant taxpayers and traders, for unfailingly meeting your legal obligations. We are forever working hard to make your experience with SARS easy and seamless.”

SARS remains committed to voluntary compliance, broadening the tax base, and fostering fiscal citizenship to support South Africa’s economic growth.

SARS is a cornerstone of our cherished democracy.

Since its establishment, it has collected more than R23.3 trillion to help build a capable state that caters for all. This success is inextricably linked to an efficient and effective revenue administration that discharges its legal mandate to collect all revenue due to the fiscus, foster compliance and facilitate legitimate trade.

“As an organisation, everything we do, is about the transformational impact we have on the lives of people, which we call our “Higher Purpose”. We are on the road to reimage our organisation into a smart, modern SARS that can be trusted and admired by all, as encapsulated in our Vision 2025–2030.”

Government Funds SARS To Improve Tax Compliance

By Agency2025-03-12No Comments2 Mins Read

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The South African Revenue Service (SARS) has been allocated R3.5 billion in the current financial year and an additional R4 billion over the medium term.

Tabling the 2025 Budget Speech on Wednesday, Minister of Finance Enoch Godongwana said broadening the tax base and improving the administrative efficiency of SARS allows government over time, to spread the tax burden more evenly and equitably.

With this budget allocation, SARS will focus on leveraging technology, data science and artificial intelligence to foster efficiency and transparency in tax administration while combating exploitation by criminal syndicates.

“By the end of February this year, SARS reported a significant increase in undisputed debt. This means billions of Rands are owed to the State. The revenue collector has also detected 156 000 taxpayers who are not registered or have not filed despite their substantial economic activity.

“I call on all South Africans to comply with the law and support SARS in its endeavour to collect the revenues that enable government to fund and provide critical services. I also want to emphasise the importance of tax compliance.

“I thank all compliant taxpayers who pay their fair share of taxes. I also encourage those that are not compliant to do the right thing. The rewards of higher tax compliance and efficiency take time. Once again, the investments we make today in SARS will allow the collector the time to make improvements,” Godongwana said in Parliament.

Over the past five years, SARS has made significant progress in rebuilding and modernising its systems by shifting to online services and automating many of its processes to improve service, detect fraud and enhance compliance.

“In 2025/26, SARS will focus on addressing the tax gap to improve revenue collection. This will be done by improving taxpayer compliance and trade facilitation by leveraging artificial intelligence and data science.