Here’s what Edward Kieswetter achieved for Sars during his 7-year tenure

Revenue collected by key tax products

Kieswetter said individual taxes continue to be the largest contributor to the tax agency’s revenue, with the agency collecting R794 billion for the period, followed by VAT with R500 billion, representing 9.32% growth.

Customs taxes delivered R352 billion to the taxman, representing 3% growth over the previous year. corporate income tax (CIT) contributed R350 billion, while excise taxes contributed R183 billion.

When it comes to revenue by segment, large corporations contributed R573 billion, followed by small, medium and micro enterprises (SMMEs) with R570 billion and government with R259 billion.

Kieswetter highlighted that the financial sector remains the largest contributor. For this financial year, the sector contributed R750 billion while agriculture contributed the least.

Kieswetter on illicit economy

He noted that the illicit economy continues to drain the country’s resources, distort competition and undermine public confidence in the tax system.

“Activities such as smuggling, customs and excise fraud, under‑declaration, counterfeit trade, fuel and tobacco syndicates and organised tax crime divert resources away from essential public services and place compliant taxpayers and legitimate businesses at a disadvantage,” said Kieswetter.

The tax agency estimates that the fiscus loses well over R100 billion in revenue each year to the illicit economy.

“People who buy illicit goods often believe they are getting a bargain,” he said. “In reality, they are funding the destruction of legitimate businesses and jobs, shrinking the country’s tax base and weakening the very institutions meant to serve them.”

Illicit economy dangers

Kieswetter said every illicit transaction deprives the fiscus of revenue needed for schools, hospitals and public infrastructure.

“There is no such thing as a cheap deal in the illicit economy and the real cost is paid by society at large. We will not allow criminal syndicates to hollow out the tax system,” he said.

“Sars, working with other law-enforcement agencies, is determined to disrupt, dismantle and shut down illicit trading networks and to make non‑compliance hard and costly.”

Voluntary compliance

He highlighted that voluntary compliance remains central to inculcating a culture of fiscal citizenship, strengthening Sars and safeguarding the integrity of the tax and customs system.

Although most taxpayers comply voluntarily, deliberate non‑compliance and organised criminal activity persist, undermining the integrity of the tax system.

Key compliance drivers during the year included:

• Debt cash collections;
• Preventing impermissible and fraudulent refund claims;
• Voluntary disclosure interventions to regularise tax affairs;
• Countering syndicated tax and customs crimes, valuation fraud and customs seizures; and
• Applying data science and AI to identify and mitigate compliance risks to safeguard the fiscus.

Compliance-revenue efforts

The outgoing commissioner noted that by the end of March 2026, a preliminary R316.39 billion was secured from identifiable compliance activities, comprising R164.59 billion in cash collections and R151.81 billion in leakage protection.

“This compares with R304.04 billion secured in the previous year, yielding year‑on‑year net growth of R12.4 billion (4.1%),” said Kieswetter.

“Compliance-revenue efforts represent 15.7% of net revenue collections, compared to 16.4% in the previous year.

“Enhanced debt‑collection initiatives further strengthened compliance outcomes. During 2025-26, debt collections amounted to R110.9 billion, while targeted voluntary disclosure (VDP) compliance initiatives supported a broader and more sustainable revenue base, delivering R6.8 billion.”

Seven years at the helm

After delivering the financial year performance, Kieswetter reflected on his time at the tax agency. He was appointed by President Cyril Ramaphosa in May 2019, initially on a five-year contract. It was later extended by two years and it is set to end on 30 April 2026.

For the first five years of his tenure, Kieswetter focused on digital and service modernisation, compliance and enforcement capability, leadership and organisational renewal, public trust and institutional credibility.

He noted that during his tenure he was able to restore institutional integrity. Net revenue sits at 6.78% CAGR, compliance revenue at 13.8% CAGR, voluntary compliance at 70.49%, public trust has increased to 75%, and employee engagement is also at an all-time high of 71%.

Kieswetter said AI detection models prevented over R672 billion in outflows during his tenure. Four illicit financial flows schemes collapsed and 83 illicit tobacco cases were handed over to prosecutors.

During his tenure, the tax agency invested in developing its cleaning staff. Today, 70 are customs officers, 29 are service consultants and 68 are artisans.

Incoming commissioner

Godongwana said the President has made his decision on who is the next Sars commissioner and that person will be announced any time from tomorrow to next week.

“The president has made a decision; what is needed is for him to make an announcement,” he said. The new commissioner will start on 1 May 2026.

The incoming commissioner will be responsible, among other things, for ensuring the success of Modernisation 3.0.

“We envisage a future where taxpayers and their representatives will be provided with a unique digital identity, which will use biometric and two-factor authentication to secure all interactions with Sars,” said Kieswetter.

The future for Sars

Kieswetter said Modernisation 3.0 will empower taxpayers to have a comprehensive view of all their accounts with SARS, enabling them to change and update their status and pay as needed.

“This process will encourage self-reliance. Similarly, an empowered Sars officer will have access to the system and could advance and resolve taxpayers’ problems.

“This system will be undergirded by an instant-payment system supported by the South African Reserve Bank, which will gradually reduce the amount of cash in circulation.”

Also central to Modernisation 3.0 is an intelligent case-management system, which will automate routine work, use big data and apply AI to foster voluntary compliance.

“Modernisation 3.0 builds on the impressive work of SARS Auto Assessment, thanks to which more than 6 million taxpayers did not have to do anything if satisfied with their automatic Sars tax assessment. This is the manifestation of the ideal world in which tax just happens.”

End of an Era

“As I come to the end of the seven years of national service, I recall the President’s challenge to those who cared about the future of South Africa and the generations to come to step forward, to leave behind a comfortable life of retirement and take their place at the forefront of the struggle where real change happens,” he said.

“It was a call to service, a call to restore credibility and the capability of our damaged institutions, succinctly captured in the call, Thuma Mina.

“I want to thank the President, the Minister, and all South Africans for affording me the rare privilege to make my humble contribution to the wellbeing of our country and its people. I am filled with immense pride that thankfully, together with the help of the people at SARS, we have given our best to the nation.”