R239 Billion in Tax Refunds Paid Out by SARS After R1.2 Trillion Collection

As of 30 September 2026, the South African Revenue Service collected R992.2 billion in net revenue for the first six months of the 2026/27 financial year, paying out R239.1 billion in tax refunds during the same period.

The revenue service reported gross collections of R1.231 trillion before refunds by the end of September. Net revenue came in 7.3%, or R67.4 billion, higher than the corresponding period in the previous year. Net revenue figures exceeded the estimate made in the February 2026 Budget by R15.5 billion, representing a 1.6% increase.

Compliance efforts secure R137.7 billion for SARS

Finance Minister Enoch Godongwana stated that higher corporate income tax, dividends tax, and value-added tax collections helped improve the revenue outlook. Additional stronger collections came from domestic VAT and pay-as-you-earn, alongside lower-than-expected VAT refunds.

SARS reported that compliance efforts secured a preliminary R137.7 billion during the first six months. This total comprised 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, said SARS Commissioner Johnstone Makhubu.

National Treasury lowers economic growth forecast to 1.2 percent

Despite the positive revenue collection figures, the National Treasury lowered its economic growth forecast for 2026 from 1.6% to 1.2%. Godongwana cautioned that elevated commodity prices were largely responsible for the revenue gains, and such strong backing was anticipated to diminish in the coming years.

In light of these conditions, Godongwana adjusted the projected full-year revenue upward by R17.1 billion, bringing the total to R2.144 trillion within his Medium-Term Budget Policy Statement. Commissioner Makhubu welcomed the revised estimate but emphasized that 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 noted.

SARS collects R992.2 billion in net revenue

How much did SARS collect in net revenue for the first six months of the 2026/27 financial year?

SARS collected R992.2 billion in net revenue as of 30 September 2026, which included gross collections of R1.231 trillion and refund payments totaling R239.1 billion.

How did the net revenue compare to official budget projections?

The net revenue was R15.5 billion, or 1.6%, above the estimate made in the February 2026 Budget, and R67.4 billion higher than the same period in the previous year.

What factors drove the improved revenue outlook according to the Finance Minister?

Godongwana attributed the improvement to higher corporate income tax, dividends tax, and value-added tax collections, alongside stronger pay-as-you-earn collections and lower-than-expected VAT refunds.