Sars tax collection beats estimate despite tough climate

South Africa’s tax collection modestly beat estimates, boosted by stronger contributions from companies, personal income receipts and value-added tax, preliminary data show.

The South African Revenue Service collected R2.010 trillion on a net basis in the fiscal year through March, Commissioner Edward Kieswetter told reporters in Pretoria, the capital, on Wednesday.

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The amount collected was 8.4% higher than the previous financial year and slightly better than the National Treasury’s estimate of R2.007 trillion in its budget review last month.

Surpassing that forecast will help support Treasury projections that government debt peaked as a share of gross domestic product in the 2025-26 fiscal year.

Tax collection from corporates grew 9.9% to R355.5 billion, while revenue from domestic Vat rose 7.6% to R604 billion. Pay As You Earn income tax advanced 8.5% to R767 billion.

“These results have been achieved despite the challenges of a sluggish economy, geopolitical tensions, global supply-chain disruptions, and the proliferation of the illicit economy,” Sars said in a statement.

The revenue agency is working with law-enforcement agencies to shut down illicit trading networks in the country that it estimates costs the state more than R100 billion in lost revenue every year, Kieswetter said.

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