Johannesburg – 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.”
*This article first appeared in our sister publication techfinancials.co.za
