Sars bosses pocket R270m as tax collections top R2-trillion

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Opens in new windowOpens in new windowOpens in new windowOpens in new windowOpens in new windowOpens in new windowEnter fullscreen mode displaying this image.ExpandSars paid 94 top managers a combined R270m in remuneration packages during the 2025/26 financial year, equivalent to about R5.2m a week. Picture: NHLANHLA PHILLIPS Story audio is generated using AI

The South African Revenue Service (Sars) paid 94 top managers a combined R270m in remuneration packages during the 2025/26 financial year, equivalent to about R5.2m a week.

The figures are contained in the Sars 2025/26 annual report which details the tax authority’s remuneration, revenue collection and operational performance.

According to the report, top management received an average remuneration package of R2.87m per person during the year.

The figures come as Sars reported net tax revenue collections of R2.01-trillion, exceeding its revised target of R2-trillion and representing an 8.4% increase on the previous financial year.

Overall personnel expenditure reached R9.34bn while the tax authority paid R627.99m in performance rewards across its workforce.

Former Sars commissioner Edward Kieswetter received a total remuneration package of R11.83m during the financial year.

The package comprised a basic salary of R8.445m, bonus payments of R3.07m, allowances of R170,000 and contributions of R141,000.

The deputy commissioner for taxpayer engagement and operations received R7.19m, while the deputy commissioner for enterprise strategy and modernisation received R6.61m.

The deputy commissioner for corporate and enterprise services received R2.62m for five months of service while the chief of staff received R4.79m.

Combined, the five executive positions accounted for R33.03m in remuneration in 2025/26. This was down slightly from R33.11m in 2024/25.

Sars appointed Johnstone Makhubu as its new commissioner, with his five-year term commencing in May this year.

Despite the substantial remuneration bill, Sars reported strong revenue collection during the financial year.

Net tax revenue reached R2.01-trillion, while gross revenue collections totalled R2.468-trillion. The authority paid R457.9bn in tax refunds.

Personal income tax remained the largest contributor to revenue, generating R793.9bn, or 39.5% of total collections.

Value-added tax contributed R500.6bn, accounting for 24.9%, while company income tax generated R349.3bn, representing 17.4% of the total.

Sars said its compliance and enforcement activities secured R319.2bn during the year, up from R304bn in the previous financial year.

The authority maintained a cost-to-net-tax-revenue ratio of 0.75%, meaning its operating costs remained below 1% of the net tax revenue collected.

Sars referred 211 cases, with a combined potential loss to the fiscus of R4.37bn, to the National Prosecuting Authority.

It also secured 135 guilty verdicts, resulting in 12 custodial sentences totalling 77 years of direct imprisonment.

In its efforts to combat illicit trade, the authority conducted 1,632 interventions, resulting in 9,766 seizures valued at R7.84bn.

The seizures included 1.4 million clothing and textile items and 188.2-million cigarette sticks.

The annual report also highlighted the authority’s digital services with its artificial intelligence assistant, Lwazi, answering more than 2.7-million taxpayer questions and receiving an 82.9% positive feedback rating.

Sars issued 5.84-million automated personal income tax assessments with only 1.47% of taxpayers choosing to amend them.

The tax authority reported a clean audit outcome from the Auditor-General of South Africa, with an unqualified audit opinion and no material findings on its financial statements and performance reporting.

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