By: Xolani Khumalo
South Africa’s tax collection for the 2025/26 fiscal year has modestly exceeded expectations, despite a weak economic environment.
The South African Revenue Service (SARS) collected approximately R2 trillion in the financial year ending March, marking an increase of 8.4% compared to the previous year and slightly surpassing the National Treasury’s forecast.
SARS Commissioner Edward Kieswetter said the growth in revenue was largely driven by stronger contributions from corporate income tax and personal income tax, as well as improved compliance measures.
Kieswetter noted that while economic growth remained subdued, enhanced enforcement efforts and better taxpayer compliance played a key role in boosting collections.
He added that SARS would continue to focus on broadening the tax base and improving efficiency to sustain revenue performance amid ongoing economic challenges.
