High Quality Content by WIKIPEDIA articles! Taxation in South Africa may involve payments to a minimum of two different levels of government: central government through the South African Revenue Service (SARS) or to local government. Central government revenues come primarily from income tax, value added tax (VAT), corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds and municipal rates. In the 2010/2011 fiscal year SARS collected R674.2 billion in tax revenue; R75.6 billion (or 12.6%) more than the previous fiscal year. South Africa has a tax-to-GDP ratio of 25.3%.