SARS collected R1.85 trillion in taxes for 2024/25 financial year

JOHANNESBURG - The South African Revenue Service( SARS) says it collected more than R1.85 trillion in taxes in the 2024/25 financial year, outperforming its previous estimates.

SARS announced its preliminary revenue outcome on Tuesday.

The better than expected collection comes despite a challenging operating environment.

The country’s chronically weak economy, a lower-than-expected wage increase, a decline in imports year on year, and the impact of logistical constraints are among the challenges that SARS was up against.

But still, the tax agency collected almost R9 billion more than the revenue estimate.

It’s also higher than last year’s R1.74 trillion.

SARS Commission Edward Kieswetter said, “I’m therefore pleased to announce that SARS has delivered on the challenge set by the minister during his budget announcement. The challenge he set was R1,846 trillion.”

Personal income tax made up the lion’s share of what was collected, increasing by 12% in the period under review.

Personal income tax has not been adjusted for inflation since 2023, which means households end up paying more tax over the long-term due to bracket creep.

Although a less substantial increase year on year, taxes earned through value-added tax (VAT) were the second biggest contributor to the outcome, followed by company income tax.

Kieswetter says there has been a notable shift in revenue streams, influenced by a combination of market dynamics, trade patterns, and consumer behaviour.