SARS achieves record R2.3 trillion revenue, restores public trust, says Ramaphosa
President Cyril Ramaphosa says the South African Revenue Service (SARS) has become a credible blueprint for rebuilding institutional capacity in the wake of the state capture era.
In his weekly letter to the nation, the President highlighted that SARS achieved the highest revenue collection in its history, raising R2.3 trillion in the last financial year.
Last week, he visited the SARS National Command Centre in Tshwane to commend and congratulate its staff and leadership on their outstanding work.
“The revenues collected into the fiscus return to our citizens as lifeblood. Basic services are delivered, social grants are paid out to society’s most vulnerable, public infrastructure is built and maintained, and the machinery of government is kept running,” Ramaphosa said.
Ramaphosa described SARS as a “standard-bearer for a capable state,” noting its innovative use of technology to create a citizen-friendly ecosystem that simplifies compliance for taxpayers.
He added that the institution is “regarded as one of the best tax authorities in the world.”
Reflecting on the authority’s recovery following the state capture era, Ramaphosa recalled that in 2018 he appointed a commission of inquiry into SARS, led by Judge Robert Nugent, after the agency had been “crippled by political interference,” with leadership purges and a dismantling of specialist enforcement capacity.
At the time, morale was low, and revenue collection had weakened, with declining corporate and personal tax compliance, he said.
“Seven years since the Nugent Commission issued its recommendations, nearly all those recommendations have been implemented,” he said.
These included restoring independent leadership and governance, rebuilding compliance and enforcement capabilities, modernising systems, and improving services for taxpayers.
The President emphasised the significance of this turnaround, noting that public trust in SARS has risen from 48% five years ago to around 75% today.
He also linked SARS’ improved performance to broader national achievements, including South Africa’s exit from the Financial Action Task Force grey list and the sovereign credit rating upgrade from S&P last year.
Ramaphosa said the restoration of SARS sends a strong signal to both citizens and investors.
“Certainty in tax policy and honesty and efficiency in tax administration is a key consideration for investors looking to bring their business to our country.
”It sends a strong signal that South Africa is serious about institutional integrity and regulatory certainty. This is confidence that is hard to price, but easy to feel when a core institution like SARS regains public and investor trust.”
For South Africans, the President explained, an efficient tax authority ensures a reliable revenue stream for social grants, infrastructure, and basic services, while offering fairness and predictability for businesses.
He also highlighted the value of commissions of inquiry, noting that the Nugent Commission not only “unearthed the full architecture of wrongdoing but proposed steps to ensure that there is no recurrence.”
“Credit must go to the leadership and staff of SARS for implementing the recommendations with diligence,” Ramaphosa said.
He stressed that rebuilding the state is an ongoing process.
“Just as state capture took place over a prolonged period of time, the work of rebuilding will not happen overnight. Recommendations have been and will continue to be acted upon. Laws and processes have changed.
”Investigations have been undertaken and prosecutions have been initiated. Most importantly, institutions have been rebuilt.”
“The turnaround of SARS has shown what is possible with a clear mission, committed leadership and capable people,” he said.
hope.ntanzi@iol.co.za
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