Here’s how SARS will spend the money it collects this tax season

Tax season is in full swing. Whenever that happens, millions of South Africans are reminded how much of their salary goes to the South African Revenue Service (SARS).

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All that money, and most don’t know where it goes after SARS takes it.

Today, that changes.

How the Government Will Spend the Money Collected this Tax Season

The government is like us. They create budgets from the money taxpayers provide.

Think of SARS as South Africa’s breadwinner and the government as the country’s homemaker. SARS collects the funds, but the government, specifically the National Treasury, decides where all the money collected during tax season goes.

And the government has prioritised its employees.

The largest portion of taxpayer money goes to government employees.

In the 2027-2028 financial year, the government is budgeting R891 billion for government employees.

However, government employees do not include ministers; their salaries and perks come from a different line item.

The second-largest single line item is debt servicing; the government budgets R451 billion of taxpayers’ money to service debt.

8 Things the Government Spends Money on

The money SARS collects this year during tax season will be spent in the 2027-2028 financial year, which starts on 1 March 2027 and ends in February 2028.

ExpenseBudget for 2027-2028Government EmployeesR891 billionServicing DebtR451 billionBasic EducationR376 billionSocial GrantsR301 billionHealthR291 billionHigher Education and TrainingR75 billionTransportR65.1 billionHousing DevelopmentR20.1 billion

Where the Government Plans to Save Money

The government also tries to save money wherever it can.

You may be wondering if that’s by spending less on ministers or clamping down on wasteful spending?

Not entirely. The government has three line items where it intends to reduce spending.

The government intends to make Metrorail the primary service South Africans will use to get from point A to point B.

Additionally, they want to ensure that grant recipients aren’t earning more than they declare. Those who are will be promptly removed as a recipient.

Method of SavingEstimated Amount in SavingsRoad-based public transport R2.54 billionIncome verification on social grantsR1 billionPostbank ContractR100 million

Who are South Africa’s Taxpayers?

The term “taxpayer” isn’t reserved for those paying personal or corporate income taxes; it applies to nearly every South African. This includes ordinary consumers who pay value-added tax (VAT) and drivers who pay the fuel levy.

Where Does SARS Get the Money?

During the last financial year, SARS collected R2 trillion from taxpayers.

While personal income tax contributed the most to this figure, the revenue service collects money from four key areas.

Type of TaxContribution (%)Personal Income Tax35.7%VAT25%Company Income Tax20.6%Fuel Levy, Custom Duties, and Other18.7%

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