Mthobisi Nozulela|Published
The South African Revenue Service (SARS) paid out R239.1 billion in tax refunds in the first six months of the 2026/27 financial year, while collecting R992.2 billion in net revenue.
SARS collected R1.231 trillion before refunds by 30 September, with net revenue coming in 7.3%, higher than in the same period last year.
The net revenue was also R15.5 billion above the estimate made in the February 2026 Budget.
SARS collects R992bn
"As of 30 September 2026, SARS collected R992.2 billion in net revenue, which includes gross collections of R1.231 trillion and refund payments totalling R239.1 billion," the revenue service said.
"Net revenue was R15.5 billion, or 1.6%, above the February 2026 Budget estimate, and R67.4 billion, or 7.3%, higher than the corresponding period last year."
Finance Minister Enoch Godongwana raised the full-year revenue estimate by R17.1 billion to R2.144 trillion in his Medium-Term Budget Policy Statement (MTBPS) on Wednesday.
This comes despite Treasury lowering its economic growth forecast for 2026 from 1.6% to 1.2%.
SARS Commissioner Johnstone Makhubu welcomed the revised estimate but said the country needed stronger economic growth to support revenue collection.
“The year-to-date outcome demonstrates the resilience of South Africa’s revenue system. However, as reflected in the Minister’s speech, sustainable revenue growth ultimately depends on economic expansion, investment, job creation and broad-based compliance," he said.
Higher taxes and compliance boost revenue
Godongwana said higher corporate income tax, dividends tax and value-added tax (VAT) collections had helped improve the revenue outlook.
However, he warned that much of the improvement was linked to higher commodity prices, which were expected to provide less support over the next few years.
The revenue service also reported stronger collections from corporate income tax, domestic VAT and pay-as-you-earn (PAYE), as well as lower-than-expected VAT refunds.
The revenue service said its compliance efforts secured a preliminary R137.7 billion during the first six months. This included R76.3 billion in cash collections and R61.3 billion in revenue leakage prevented.
“Every rand recovered through compliance interventions protects honest taxpayers and strengthens the fiscal framework,” Makhubu said.
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