The Digital Revolution at SARS

The South African Revenue Service (SARS) has reported a positive revenue collection outcome for the 2024/25 financial year, collecting a record gross amount of R2.303 trillion, representing a 6.9% year-on-year growth despite a challenging economic environment. After paying out R447.7 billion in refunds to taxpayers—the highest ever amount—the net revenue collected stood at R1.855 trillion, exceeding revised estimates by nearly R8.8 billion. SARS Commissioner Edward Kieswetter highlighted the organisation’s critical role in funding about 90% of government expenditure, which supports essential public services such as pensions and health care.

SARS continues to modernise its operations by leveraging technology, including artificial intelligence, machine learning, and data science to improve efficiency and taxpayer experience. Its Auto Assessment system, which uses third-party data to automatically assess tax returns, issued assessments to 5.8 million taxpayers in 2025 with a 99.6% accuracy rate, and processed R10.6 billion in refunds within 72 hours. Digital channels like eFiling, the SARS Mobi App, WhatsApp, and Lwazi Chat Bot handle millions of taxpayer interactions, making tax compliance simpler and more accessible than ever.

For the 2025/26 fiscal year, SARS has been allocated an additional R7.5 billion over the medium-term expenditure framework to enhance revenue collection, particularly focusing on tackling tax non-compliance and illicit financial activities such as money laundering, trade mispricing, and fraud in industries including cigarettes and cryptocurrency. SARS also faces the challenge of a slightly lower nominal GDP growth projection, which affects tax revenue forecasts for the year. Despite this, SARS remains committed to meeting the revenue target of R1.986 trillion set by the Finance Minister, contributing to South Africa’s fiscal stability.

SARS’s ongoing commitment to transparency, efficiency, and innovation aims to build a modern tax administration that is trusted by the public and capable of seamless service delivery. This progress is crucial for sustaining government programs that improve the lives of South Africans amid continuing economic challenges.

SARS’s latest outcomes demonstrate strong revenue growth, enhanced digital transformation, and an ambitious commitment to compliance and modernisation, positioning it as a pivotal institution supporting South Africa’s economic and social development.